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about taking a winning strategy to an institution
- Thread starter Sky123987
- Start date
Quote from Sky123987:
I have this day trading strategy that has been doing well ever since the inspection. It is 100% full auto. It's not a scalping system so you can put a LOT of size. I estimate I can move 20 million in and out of the market everyday.
Problem is I don't have that type of risk tolerance. I've never really though of this, but does anyone go to institutions and say hey I have a winning strategy here's proof, would you like to invest?
Thanks
Invest? They won't even let you near the coffee machine let alone their clients funds!
Institutions have strict recruitment policies and applicant profiling, psychometric and aptitude tests, you can't just wander in off the street with a strategy on floppy disk and say here fellas, try this!
Do what someone else suggested, get a real-time track record and find a few investors who will pay commission on results, if the system and returns are any good as well as risk limited then word spreads fast and you'll end up with a decent fund.
Quote from Sky123987:
I have this day trading strategy that has been doing well ever since the inspection. It is 100% full auto. It's not a scalping system so you can put a LOT of size. I estimate I can move 20 million in and out of the market everyday.
Problem is I don't have that type of risk tolerance. I've never really though of this, but does anyone go to institutions and say hey I have a winning strategy here's proof, would you like to invest?
Thanks
Take a few steps back.
Have you even backtested this strategy? Have you paper traded it for a few months?
After you do that, try deploying real money into it.
After a year of that, you're maybe ready to start approaching investors or institutions.
Quote from Hydroblunt:
Take a few steps back.
Have you even backtested this strategy? Have you paper traded it for a few months?
After you do that, try deploying real money into it.
After a year of that, you're maybe ready to start approaching investors or institutions.
I have been trading it live for ~ 6 months now
Quote from Sky123987:
I have been trading it live for ~ 6 months now
With how much capital? It has to show that it is scalable, so flipping around a few hundred shares only goes so far. As liquid as the big stocks seem, or futures, when it comes to moving 20 million a day, the game changes.
Give it another 6 months and you should have a record that holds a lot of weight.
A few questions & considerations. If your trading system is that good, why wouldn't you want to keep it for yourself and trade your own capital? If it's a lack of capital question, there are plenty of firms who will extend leverage and still give you almost all your profit. Maybe you see this as a way to break into a large institution, which is your goal. Then consider that in that case, you give up all your proprietary info and it becomes the institution's.
Quote from Sky123987:
I have this day trading strategy that has been doing well ever since the inspection. It is 100% full auto. It's not a scalping system so you can put a LOT of size. I estimate I can move 20 million in and out of the market everyday.
Problem is I don't have that type of risk tolerance. I've never really though of this, but does anyone go to institutions and say hey I have a winning strategy here's proof, would you like to invest?
Thanks
20 million shares?
If it works for FX, I might be able to help you. We are part of a group that's in charge of the allocation and due diligence of FX traders for a group of hedge funds. In our group we also have some very bright, PhD systems traders that run hundreds of models - but they are all FX related. If your model works and is not just over-optimized for the current market environment, then we may have something for you; otherwise, you'll have to go hunting yourself.
As one of the first posters said, it helps when you know someone that can get you "in."
Best of luck to you no matter what you decide to do.
As one of the first posters said, it helps when you know someone that can get you "in."
Best of luck to you no matter what you decide to do.
Quote from Sky123987:
I have been trading it live for ~ 6 months now
6 months is laughable.
But if you are talented...
Which I seriously doubt based on the 2,876,434 questions you have asked on ET...
Someone might offer you an entry-level job.
What young people have trouble understanding is this:
No capital = no power, no leverage, no nothing = employee