Fully automated Portfolio trading system looking for partner.

[SPX Options Trader]

No offense, but people like you have come and gone throughout the history of the market. Practically a dime a dozen.
Someone claiming to have some sort of holy grail trading, fixed, formula. Very, very, few truly do, though.

Does your system generate, on average, a consistent 20% return, 30%, 40% return, 50%, 60%?
It's very difficult for someone to invent a fixed formula than can consistently, generally, on average, beat the S&P annually, every year.

For all of this to work, a trader or system would need to do a high number of leveraged, optioned, trades. Have precise timing.
The opposite of conservative investing.

 

[Sun Light]

The only metric I look at is equity curve compared to a buy and hold of SPY.

Yes that curve looks good (good question). and That is one of the one of the main curve I look at when doing my job (of 2% manual intervention). Other chart important are pie charts of Sector investments, large-cap vs small-caps, signal types, hold period distributions etc etc. We don't want to become too skewed compare to general market structure, composition, sentiment at a given time.

With all this complexities, "Share ratio" becomes a less important metric for me.

 

[Sun Light]

No offense, but people like you have come and gone throughout the history of the market. Practically a dime a dozen.
Someone claiming to have some sort of holy grail trading, fixed, formula. Very, very, few truly do, though.

None taken. It is not holy grail. Actually the starting point for any good system developer should be to making a "peace" with the understanding that there are no holy grail. (Knowing vs making a peace are 2 different things.) So there are no holy grails. There is only Statistics.

Does your system generate, on average, a consistent 20% return, 30%, 40% return, 50%, 60%?

That is not a so good question IMHO. No offence meant. I already answer relevant answer in this thread to that.

For all of this to work, a trader or system would need to do a high number of leveraged, optioned, trades. Have precise timing.
The opposite of conservative investing.

System does not trade options at all. Probably because I could not understand options as much as many others do. So I could not find any quantitative edge. From what i understand, as a successful option trader one need to be spot correct on 1.Direction of trade 2. Entry Price 3. Entry Time 4. Exit time 5. Exit Price. Even if one of the factor is messed, the trade goes bad. That is too many things to be on Right side, statistically. That being said, I personally know many people who are great option traders. It is just not my dish. Peace.

 

[fan27]

Background:

I am not sure if this is the right forum to put it out, but is my best guess so here it is.
In last few years, I have developed a fully automated trading system to trade Stocks.

It starts early morning, updating database, earnings events, news etc. Then it submits several orders before market opens, valid for that day. Once trading starts, it scans entire market periodically and enters new trades.

On average it takes about 15 new trades each day. Typical holding period is 3 to 6 weeks. Typical number of unique stocks held in portfolio are 350. Exists are calculated automatically.

There is High level flags for leverage, long to short bias, risk, sector weight etc.

It is close to 98% fully automated. I do not think any portfolio management system with hold period of few weeks can be 100% fully automated.

The 2% manual intervention it needed is on Setting up high level flags (changes in few months), managing about 2% of portfolio which is in severe loss (checking news, Human Fundamental and sentiment analysis) etc., Manually reducing leverage when needed by closing positions.

What I am looking for:

I would like to take this product to next level.

I want to partner with right professional who brings complementary skillsets to the table. Professional with Industry experience with Fundamental analysis, trading experience for big firms, has connections to find funds, Regulations. You need not have technical skills, but if you have it is a asset.

The product is developed to trade portfolio level with Risk management as a core. I will be checking my private messages as well visiting this forum once daily.

References, proofs, more details of systems will be exchanged privately as needed.
questions and suggestions (other ideas to take this to next level) are appreciated.

Come back in a couple of years with live trading stats in hand...this will get you better traction.

 

[tnatrader]

Do you have real money trading this right now? If so, how long is your track record? Without a live record, it's tough for capital providers to put up anything unless you also got capital for a first loss kind of deal.

 

[ajacobson]

DM me if you are ever planning a trip to the Chicago area. We're always willing to devote some time to new ideas. We are about 25 miles outside of downtown

 

[Sun Light]

Come back in a couple of years with live trading stats in hand...this will get you better traction.

Do you have real money trading this right now? If so, how long is your track record? Without a live record, it's tough for capital providers to put up anything unless you also got capital for a first loss kind of deal.

That's is what I keep on hearing. So i tried different other combinations on a mini scale, but it did not works as a system expected or mixed results. All these small systems never felt me confident that it can work long time in varying market. Finally I realized that instead building a system that i can trade as individual and prove track record, I need to build something that is tradable at a Fund level and see if that works.
This i am running about 2 years and good results as i would like it to see. I run it with IB api on simulation. Some signals I do take in my personal Real trading accounts which has ok results.

But strength of the system comes from numbers (+350 instruments about holdings at a time), risk distribution, Risk management, many other things that i can not explain here. I can not take 350+ unique positions in my personal account.

It is not signal generation system. But at portfolio level trading. I am just not looking for capital, but unique complementary skills too. May be some already established small/medium size funds in equity trading may be....I don't know.

 

[Sun Light]

DM me if you are ever planning a trip to the Chicago area. We're always willing to devote some time to new ideas. We are about 25 miles outside of downtown

Thank you. I am preparing a small presentation and we could do it a video call first if you are interested in a week or so. I am NC based. I am planning to visit Chicago and NY area in couple of weeks, so will certainly touch base with you.

 

[qlai]

+350 instruments about holdings at a time)

I am curious how liquid are these and how you mitigate risk since most stocks have high correlation, as I’m sure you know.

 

[Sun Light]

I am curious how liquid are these and how you mitigate risk since most stocks have high correlation, as I’m sure you know.

Excellent 2 questions. These are as liquid our markets are. Market generally follows 80-20 rule. i.e. 20% of stocks have 80% market cap. The system holdings also should not be too much further away from that, as so is the liquidity.

There is little less correlation among the holdings compare to larger stock market itself. Just a little bit less. That may be because the picks comes from different strategies. The stocks in holding may be at different stages of performance, that may be reason on little less correlation.