My Basket Startegy...

P

Patrick.bateman

I currently have a basket of 21 stocks that all react to certain Natural Gas Basis information... I am not going to get into the startegy... but my question is what is the best way to execute the strategy? Prop firm, form an LLC and trade in the LLC? I am currently an execution trader at a large institutional shop... trading between 2-3mm shares/day in otc, listed, pinks, bullys etc... I do not take positions and nor do I want to involve my firms capital... So I am not new to this unlike some of the knuckleheads on here... any ideas from someone who has experience in this... I have tested thru a demo account for 5 months.. results were honest and fantastic... time to bring the system/strategy to the next level
 
Would it be possible to reduce the number of stocks in the basket and still maintain profitability? Eliminate the ones with the tightest correlation.
 
I was thinking about this as well... however Schlumberger posted earnings on Friday and it really impacted my basket... so I am not sure if it makes sense to eliminate certain stocks as the basket smoothes some of the bumps in daily trading... one idea was to use XLE as it contained most of my stocks however... XLE also contains stocks that do not react to my information.... I do see your point in narrowing down the list... this is a good point...
 
that is what I have been working on... I took out some difficult to borrow stocks, low volume stocks and rangless stocks... I have it down to 28 Thanks
 
Quote from Patrick.bateman:

that is what I have been working on... I took out some difficult to borrow stocks, low volume stocks and rangless stocks... I have it down to 28 Thanks
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Down to 28? I thought you started with 21 stocks?
 
Quote from Patrick.bateman:

I currently have a basket of 21 stocks that all react to certain Natural Gas Basis information... I am currently an execution trader at a large institutional shop... trading between 2-3mm shares/day in otc, listed, pinks, bullys etc...
More...
Sounds like you want to front run NG inventory info you get from your job? I hope these stocks aren't the ones you are trading for your shop.

Not criticizing, but is this legal?

TIA
 
See this is why I want to speak to compliace here before we actually take the next step... I DO NOT TRADE THESE STOCKS OR FRONT RUN ANY EQUITY TRADE.... If you have more info let me know thanks
 
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