I think I have a winning strategy. What can I do with it?

[lawrence-lugar]

I've found a strategy that seems to work really well

I thought of starting a mutual fund, but I don't think I have enough capital or the reputation for that.
I thought of prop trading, but that seems mostly oriented towards day traders.
I thought of doing a 'friends and family' investment advisor

I feel like I have a strategy that crushes any mainstream mutual fund/etf, but there's no way for me to offer it to regular investors.

Sure, and every contestant on American Idol assumed they would win.
I'm not saying whether you have a gold mine on your hands, but just saying. saying the probable realities of the situation.

Find a strategy, or improve on a skill, that you can do on a daily basis...rinse and repeat.
Instead of doing something slow and requires much money to be worthwhile or get off the ground.

This is Elite...Trader after all -- not EliteMutualFund,

 

[ajacobson]

Document your performance with your brokerage statements. Create a coherent presentation and go hit the managers in Portland.

This board has become incredibly harsh to anyone with a dream.

Make certain you can explain your methodology and demonstrate that it was one or two lucky trades.

 

[SoesWasBetter]

I wondering how much to offer for exclusive rights to this method.

Thinking between 500k and 1MM.

 

[SoesWasBetter]

Document your performance with your brokerage statements. Create a coherent presentation and go hit the managers in Portland.

This board has become incredibly harsh to anyone with a dream.

Make certain you can explain your methodology and demonstrate that it was one or two lucky trades.

dream or fantasy

 

[Overnight]

... fantasy

Trippy man. Whoa.

 

[small_el_trader]

Sample size way way way too small, no one will view one year as nothing more than luck in a bull market. Last 6 month system I back tested was over 50 years sample size, so I could see approx. drawdowns/profits/breakevens. You don't mention if you used dividend stocks and how much of that was in 40%.

Attorneys you will need them to start a mutual fund and registering with each state you plan to attract funds, expensive from the get go. Advertising way expensive as well.

I would just trade it a number of years and backtest it much longer back and especially during chop and down trend years.

Where did you get the data for your 50 years of back testing? I did 10 years because that was all I could find (I got data from quandl).

No dividend stocks mostly futures for whatever that's worth.

I realize 1 year of trading isn't enough to declare this will work forever but I'm wondering just how much data I need to actually convince people.

 

[small_el_trader]

Document your performance with your brokerage statements. Create a coherent presentation and go hit the managers in Portland.

This board has become incredibly harsh to anyone with a dream.

Make certain you can explain your methodology and demonstrate that it was one or two lucky trades.

How do you "go hit the managers"? Would an investment manager listen to someone who walked in off the street with some brokerage statements and a powerpoint presentation?

 

[JackRab]

40% in a 25% bull year isn't amazing... and I haven't seen a 10% pull back in the SP500 this year, so your 10% drawdown makes your strategy quite normal with maybe a bit more volatility...

Almost seems like you have a leveraged SP500 product, a 2x ETF or something... that would get the same results...

 

[ajacobson]

"How do you "go hit the managers"? Would an investment manager listen to someone who walked in off the street with some brokerage statements and a powerpoint presentation?"

Many won't - you only need one. Portland is a lot easier than NYC - smaller. When I was on the exchange side I hit it every five weeks. TheNines hotel and Michael Allens menswear with their resident Cavalier King Charles.

You'll get rejected and turned down a ton, but you raised the issue of what to do and you'll only need one yes. You certainly need to demonstrate some initiative. Everybody will snipe at your results, but without any initiative, you are doomed.

When you have your presentation shoot me a copy - ajacobson@exitosus.com and I'll give a sense of how it sells.

 

[sle]

Make certain you can explain your methodology and demonstrate that it was one or two lucky trades.

Or, if it's somehow can be perceived as a carry strategy, be ready to defend that it's not.