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Finding an edge is only something the very few will do. Everything else you can easily pick up from books or self study, money management, risk management, trading discipline, etc. An edge is the magic powder you sprinkle on top of it to make IT happen. ;) Jeremy said it well in Margin Call...

And if you borrow the money from the investor? Then the money received is legally yours as it is a regular loan with a variable rate written in contract. That monthly rate on the loan you link to your monthly performance minus your fees.

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So what these is saying is that adding domain specific knowledge is key that makes a difference between randomly generated garbage and something with a true edge. The more domain specific knowledge you add, the better.

Over fitness problem may be somewhat solved by testing the strategy on the real live market that the strategy continues to perform according to back tested performance metrics, "Forward testing". This will sort out the strategies that are high ranking due to over fitness/data bias. A lot of the...

That true to some degree, time is a constraint, especially if you have a full time job and kids. If you are running the project alone it will take years. Getting a working prototype up and running is doable in a month or two.

Starting a project to develop a platform to explore the idea to use Genetic Programming to breed trading systems. This is cutting edge shit that is showing very promising results by the research papers I have come by. There are commercial platforms out there and they cost $10,000 and up for a...

I enjoy using the Fedora Linux distribution. I have used Ubuntu in the past, but the quality was not good enough so I ditched it for Fedora. Fedora is quick on updates with the latest versions of OS kernel, tools and software which is important for software development, regardless of what...

Yes you can, and I will share the secret juice with you. :D Then Manufacturing ISM and/or Non-Manufacturing ISM prints a data point below 50 and continue to tick down for two more data points, each one being lower than the previous, then the top is in! Example a three data point sequence: 49...

Dont have to make it harder than it is.. and it is a very importand metric. Drawdown, often refered to as Peak-To-Valley drawdown is measured from max account equity value, this point often refered to as High-Water-Mark. The percentage is then dervived from this. Account high water mark...

Should be a way to get around this obstacle. At least for a startup period until you get moving. Have a girlfriend, friend, wife, sibling execute the orders for you in a account set up in their name? You just send the coded order by sms or use some messaging system.

Well, if you can keep it up. The outcome of one single day, week, or month doesn't mean squat. Continuity over a longer period of multiple years are the only thing that matters.

Before you can manage other peoples capital you need to be able to manage your own. Get to the stage where you are continuously making $100.000 in annual profit for a couple of years. Then you may be experienced enough to take on OPM.

Have had thought about that, why not use crowd sourcing platform to bring in OPM. A systematic trading strategy is basically a software product like any other, a game or a application. A rule based algorithm where you put in data (raw quotes) in one end and get out data in the other end...

Some good reads: http://www.cmegroup.com/education/files/CTA_guide_1-3-08.pdf http://www.cmegroup.com/education/files/HF-157_HandbookFinalUpdateDisclaimer_SR.pdf

Usually as a CTA/HF you expense monthly at the first day of the calendar month. This also keeps withdrawals/deposits in sync with end of month transfers in and out of the fund/account. You grab the monthly management fee immediately at start of the month or deposit as the clients money will...

As I understand the top two winners of the tournament receive 3 million dollars each to manage and pocket fees from. A decent amount of money imho.

Anyone have experience about these guys? http://www.battlefin.com/ They host regular trader tournaments to evaluate and find talented traders suitable to become CTA or HF managers.

Interesting post s0mmi. These guys, do you know what percent return do they make in a full year and what are their account peak-to-valley draw down during that period?

Not saying you should not trade until you have that amount. Just that you should not leave your six figure day job prematurely. If you have a nice job paying good amount, why not keep it and trade your capital up faster than going full time to early. The 1.5M is my personal figure related my...