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Well, personally, I don't know that I could find enough talent that I would want to do business with. Unfortunately the trading world is full of posers and degenerates. I know a guy who has been trying to create something similar to this. He tried to recruit me a couple years ago. He's...

Good points.

I understand where you are coming from, but the concept of rev sharing is really the driver of any type of relationship like that. In my experience there really isn't a strong driver to form a co-op to simply split costs. I do that already in a sense, by hiring out marketing, legal, and some...

This sentiment is precisely why there are more edge providers in vol trading than in direction. When the vast majority of participants give little thought to one of the pricing variables, it allows for certain others to base entire strategies around it because there is a lot of edge to be had.

I've thought about this several times Heech as there are guys like you who run funds with equity curves similar to mine and would make a coop appealing. The basis of the idea is that there must be some version of profit sharing. One of the main draws for managers like us is that if we happened...

Yeah, which still doesn't count in my book of alpha generators.

Not at all. I'm arguing that 'gut feel' isn't a strategy and doesn't belong in the same discussion. There is no way to quantify or describe the edge other than to say that the trader 'just knows'. That is not a viable description of a strategy. After watching that documentary on Tudor I...

In all the above cases, a longer term volatility view will still likely result in some reversion. The same cannot be said about directionally trading the underlying. Just because a stock has doubled, it isn't necessarily implied that it will mean revert and a stock losing half its value has...

Documentary footage, interviews, etc... all give me the impression that he is a 'gut feel' type of guy. When he has a big win, he seems just as surprised as everyone else. Not even in the same league as Simons.

Wasn't implying that the retail trader has the ability to know the cause of the inefficiency. Just that a vol trader can see it happening and trade it purely from a vol forecast perspective. You don't really have to know why vol is high in order to profit from it.

Tudor doesn't fall in that category for me.

Why is that always the go-to assumption? EVERY strategy has a scaling cap. Most managers producing the numbers I mentioned are under $10MM, and numbers would probably start to fall at $50-100MM. Once they reach $200-500MM they are pretty much even with everyone else. The best ones (e.g. Jim...

Not sure I follow your argument that "spreads still lose when implieds decrease all else being equal." Why is it naturally assumed that spreads would be positioned at the higher levels where they lack convexity? The driver behind using a spread is to either profit from errant convexity, or...

Not enough info. First off, strictly speaking, you cannot be naked long an option. 'Naked' specifically means that you wrote a contract and don't own the underlying to offset it. You seem to be referring to "outright buys". IOW, buying an option without an offsetting position. We have...

I'm not the developer at my firm, I've got a computer science grad for that. He is versed in C#, Java, R, Matlab, SQL, and a bit in Python. So FWIW... We also do our profiling in R making use of the extensive quant finance libraries to cut down development time. He manages our database...

Less sophisticated HNWs are pretty much the only ones lighting up at 100% returns. Professional managers almost see it as a disqualification. There are many things like that in fundraising. For example, you'd think that a very high Sharpe ratio would be a good thing. I've been told...

Ditto. It isn't just coincidence that Heech and I run into the same stories and the same problems in raising capital. You would think that every manager has a different perspective and therefor each will be valuing different things. That really isn't the case for the most part. Sometimes it...

BTW, a good trading program should not be "gambling", regardless of the ave holding period. It should have a demonstrated positive expectancy with well defined risk limits that allow that expectancy to result in quantifiable long term expected returns within the predetermined variance. Good...

I realize that when investing your own capital, your take is now 90%, but there are many established programs out there that will give you similar terms if your end goal is to simply get good performance for a 10% fee. A huge number of funds have had to drop their fees recently. And if your...

I was suggesting that there are only three main categories for them actually seeding start-ups.