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>> Good luck. Let us know how it goes if you actually follow through Thanks, I'll let you know. >> though based on your prior posts, I am a bit skeptical that you will. Well, today I laid down the tasks (7 points, some of them with up to 5 subpoints). From this point on it's essentially...

US first, to polish my system. Then Asia.

Hi H2O, you can get the draft from here: http://www.aquarianz.com/MihaiBunea_HedgingWithFutures.pdf Cheers, Mihai.

>> @lawrence-lugar: Just do it. Good luck and Mazal tov. Thanks, I'll definitely document either outcome of my endeavour (hopefully the happy one). @h20: sent you a message using "Post" on your profile.

>> I reckon OP has some ideas about dynamic hedging and working out a way to capture real vs implied vols... am I correct @Aquarians? Yes, dynamic hedging is essential. >> The main purpose of market making is capturing bid/ask-spread through high volume, for which you need high flow...

>> @JackRab: Well that sounds very far-fetched, since you're unwilling to back up your bluster... Well, I didn't want to post the link to the article in the open since I don't want my name easily linked to the drunken ramblings that @zdreg takes great pleasure in re-quoting for me... >>...

Having your profitable strategy leaked to a single other person is something of very little damage, if that person is not a cretin. As long as he keeps his mouth shut and trades in his own account, the market is big enough for both of you. Problem's if the guy works for an established business...

>> please post your published articles I think I'll pass on this one.

>> @JackRab: I suggest you keep that 50k in your pocket and trade little bits in options in the next 1-3 years to learn about the dynamics of options. Learn about probabilities. Learn about risk. Learn about hedging... dividend, interest rates, time-effects... I know this stuff man, I've...

@Lee: >> There's a lot of edge cases that need to be dealt with that I'm assuming off-the-shelf systems already handle. And problems such as machine power down during bulk send of orders and trade reconciliation. I'm definitely not gonna write a spaceship from the first try. For starters I'm...

@Lee: initial prototype phase through Interactive Brokers, 100 market data lines, practically free. Next phase, add up to 1000 data lines, $300 / month. Then a FIX interface with them is $1500 / month. So $50, $500, $2000 as rough estimates for various phases of the project if it goes well. No...

Dunno what that means but I'm a person with $50k in his pocket.

Gotta try to be a bit more diplomatic in the future :P Thanks all for your support though, you're being very helpful.

There's always another party :P

Ok.

Second type, equities / indexes / ETFs. Another gut feeling I have about $50k is that those who would be interested in the value generated by an investment of this size don't have the money and those who have $50k to invest are not interested in what additional value that investment would generate.

I'm re-stating my proposal, I've got $50k to spend on the development of an options arbitrage and market making system. Estimated timeline: 2 years (1 year optimistically, 1 year reserve). It's been said here that I don't know jack squat about either, well, I'm not ignorant about these things...

What you do when everything that you invested as plan A falls apart? Like say, building a spaceship that travels at half the speed of light to reach the nearest habitable solar planet in 120 years. And, as engineers know, you build several backup systems for the systems you use in your ship...

I haven't worked that much with traders as to make an opinion about them except in general they're the kind of guys throwing shit at a wall hoping some sticks. Nothing wrong with that, in scientific terms that's called "R&D" and is eons above the sub-amoebas in the development department. But...

Tommy was my boss: Further reading at https://www.elitetrader.com/et/threads/developers-building-their-way-up-to-traders.313976/