How to fund research for trading methods

J

jacksmith

Hi, All:

We have an idea for a trading method. We have proved that it shall work by theoretical analysis, and shall give good return.

However, we do not know if it will work in real market. It may take 2 man-years to develop the software for the trading system before we can test it with real market.

Does anyone have any suggestion on where we can get funding to fund this research ? If we can get 4 good software engineers, we will be able to develop the system in half year.

Thanks.
 
Well I don't want you to fail......

But anyways, whats your main issue: the research or the programming?

I think its the software programming...right? Because it seems like you have your ideas and strategy already, but you're looking to make it automated.
If that's the issue, you might not need funding. You didn't mention what you were going to be trading, but if it's FX, you can get a lot of good and free help online.

I developed my own FX strategy, and I want to make my own MetaTrader EA. I'm getting a lot of help and great advice from these sites:

http://www.tradingsystemforex.com/
http://www.forex-tsd.com/
http://www.mql4.com/

I'm sure you could find some online help with whatever your trading though, not just FX.
 
Jack! Jack! What kind of idiots do you think we are? Those of us who REALLY trade, though in the minority here, know that truly robust and enduring systems are shit-simple. My best system takes ten lines to code in E-Signal. If you already knew the algorithm it would take you at most two minutes to code it. So once again you prove to us you are nothing but a fraud. Four programmers? Six months! Hahahahaha!
 
I also think that 2 man year of coding is a lot. But, if you have experience in the field you know some serious shits can take long. (Usually in a business environment it takes longer cuz people are not focused...)
Some guys at Societe Generale are working on Kalman filters for hedge fund replication. I think somewhere they mention that this thing is about 14000 lines and where probably not talking about 10k lines of switch cases and comments.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1035521
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1325190
If you read that thing you'll see 10 lines wont do it.
 
We are in the different camps.

Do you think DEShaw or Renaissance's system can be coded in a few lines ?

We believe market is efficient in general, so we go extreme to seek in-efficiency, which we believe are hard to find by nature.

Plus, many systems look far beyond price and volume. (For example, some systems look the correlation between weather information with commodity price). I will not reveal what we are looking, but we need to build a system to look beyond price and volume.

(In other words, we believe we are try to build a mini-DEShaw or Renaissance system).

Only by discovering in-efficiency, we will know our success is not by luck, we will be in good hand.

Quote from Joe Doaks:

Jack! Jack! What kind of idiots do you think we are? Those of us who REALLY trade, though in the minority here, know that truly robust and enduring systems are shit-simple. My best system takes ten lines to code in E-Signal. If you already knew the algorithm it would take you at most two minutes to code it. So once again you prove to us you are nothing but a fraud. Four programmers? Six months! Hahahahaha!
More...
 
With a prototype I think you could get cream from some venture capitalists. I dont think they would buy an idea without knowing you or you having some kind of record of producing some high yielding systems. But with a "in principle" prototype someone could assess wether or not the idea is worth pitching 150k in.
I've built prototypes in afternoons and you can better say if it is making any sense and worth spending days/weeks coding the whole thing.
You could also try to find these 3-4 people and propose a deal where everyone get to keep the system when it is coded. For that you would need to share results from time to time so one individual dont fly away with everything. You need people who are more business oriented because most people are employee minded and are not going to do a thing without a salary.
 
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