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Once a true alpha is calculated for a daily, SPY long/short strategy, would it be possible to interest a prop shop in trading it? Or trade managed accounts, or having a fund built around it by others? Or otherwise make money with it using OPM? The "true alpha" would be 20%+ annually. As...

I'm sorry. It NOT - repeat - NOT - LOW latency. Again, my apologies.

It's low latency. It's a daily, zero investment (or long/short), SPY strategy trading 100 winners and 100 losers

Would members here recommend we - with no trading experience - embark on algorithmically trading our own strategies with millions of our own money? What are some of the pitfalls of trading an algorithm? It's not just ALL automatic, for instance, is it? The algorithm does everything?

Thanks, for pointing out HTG. Does anyone actually know anybody over there? I got voicemail when I called an automated response when I sent an email. We're reluctant to send our strategies off into cyberspace as they seem to want. Would just welcome the opportunity to speak briefly with...

If members here can help us with identifying a prop shop or other capital source and give us trading advice, we're grateful and members have been helpful. Rmorse has, for instance, pointing out why $10m can't be leveraged 6x. We're willing to prove our bona fides privately to any/all interested...

Thanks, all. What we'd be pitching is a updated daily, zero investment, Rachev-ratio strategy which two large banks traded 5 years ago and made billions. It's been updated to reflect changes which have taken place since, with new backtesting and paper trading and the calculation on a new true...

What would you have us ante up? The purpose of the post is for mentoring purposes only. We're primarily a group of academics, without trading experience, i.e. we can devise strategies (and have) and program them, but we've never actually traded $1 ourselves. (Banks, etc. traded billions using...

Zari, our chief scientist, was working on the true alpha as Maverick74 suggested even before I responded to his post unbeknownst to me. Be happy to post it in about 10 days.

Thanks for your responses all. Keep them coming, if you would. To clarify: To us HFT, means milliseconds. We're not trading that frequently. Our strategy has nothing to do with scalping. We're not day-traders, either. Ours is a zero investment strategy. The set of winners and losers are...

What is the value of backtesting and paper trading? Are those helpful for our own internal R&D process and denominating in risk units as Maverick74 suggests more useful for marketing purposes? How should be be doing our R&D? With backtesting or using some other methodologies? N.B. We're...

Thanks Maverick74 and esp. rmorse. Will recalculate according to Maverick74 and post. Thank, again. ALL comments solicited, welcomed, and appreciated. You guys are VERY knowledgeable and great! Thanks, again.

We're seeking a prop shop which would allow us to trade $10m of their money, to obtain "live" results of our backtested daily Rachev ratio/zero investment strategy to raise a fund to trade it and to fund our development of a one-minute one. We ran the daily with the parameters of previous 365...

We have a 1-minute zero investment strategy. In theory a small amount of money can 2x a day. The substantial profits are being consumed by the high transaction costs, which is a forecasting model problem. What are inherent difficulties to be overcome as far as developing models for such...

Are there any 1-minute strategies being traded (or have there been any)? They're hard to run as we're discovering. (I'm not the quant or algo programmer/developer. I'm the lawyer/salesman/"Jack of all trades.") What are some of the obstacles as far as they're concerned?

We have the results from when we traded the exact same strategy for two banks.

Thanks, garachen. Indeed, let's figure out how to make money together. That is exactly what our approach is, although, perhaps, I failed to make it clear. I realize we're going to have to surrender something for the money to trade. We don't want to get into a situation of where we're...

Very helpful, lawrence-lugar. Thanks. If you want to know what the "secret sauce" is: What we're trading is a "zero investment" strategy. "Zero investment" strategies are - to the best of my knowledge not widely known employed in the trading community or finance because of the computational...

Because then THEY (and not US) would own the IP and, and more importantly, the algorithms. + We'd probably be prohibited from trading them ourselves. All of our strategies contain - or are based on - the same "secret sauce." We want to trade using a strategy containing the "secret sauce" to make...

Basically, I'm member of a team of experienced traders, quants, academics, and algorithmic programmers with track records at sovereign wealth and hedge funds and a German-based NY bank. One of our back-tested and paper traded strategies, for instance, shows unleveraged returns of 14.68%...