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need advice to whether to join a hedge fund or a prop shop or to go solo?
- Thread starter vita
- Start date
I agree. Laid off traders regroup and form new (but small) funds. Any systematic strats with no overnight risk and a track record of ~20% & Sharpe~3 sees traction.Quote from wave:
I actually believe there is more opportunity now. You have guys regrouping on their own after being let go and looking to start their own smaller hedge fund or private equity firms. Big is out and small is back in.
Now if you got something they need, they will be all ears.
Thanks for the advice. One comment about 20k hedge fund layoffs is that most of these guys are not PM's or traders, they're compliance officers, operations, accountants, etc. The hedge fund redemptions will "eventually" end and the $8 Trillions cash on the sideline will be vested somehow.Quote from wave:
Just never sell yourself out. Some of these guys would sellout their own mothers to screw you.
Read the fine print. What the large print giveth, the fine print taketh away.
you have a strategy with 5+ sharpe and you say you KNOW it works yet you are afraid to borrow $10k to trade it?
you are obviously not sure if it'll work.
to give you the benefit of the doubt, suppose you do have something and you KNOW it works. in this case, why the hell would you go to the hedge fund? it's stupid to give it away like that. you say you can get a job and work for 3-5 years to save some trading capital. just do that. you KNOW your strategy is going to work, right? so you delay becoming a millionaire for 3-5 years. big deal.
if you reveal the strategy to the hedge fund, you get what? $300-500k your first year and then they decide they don't need you anymore.
you are obviously not sure if it'll work.
to give you the benefit of the doubt, suppose you do have something and you KNOW it works. in this case, why the hell would you go to the hedge fund? it's stupid to give it away like that. you say you can get a job and work for 3-5 years to save some trading capital. just do that. you KNOW your strategy is going to work, right? so you delay becoming a millionaire for 3-5 years. big deal.
if you reveal the strategy to the hedge fund, you get what? $300-500k your first year and then they decide they don't need you anymore.
Quote from timmyz:
you have a strategy with 5+ sharpe and you say you KNOW it works yet you are afraid to borrow $10k to trade it?
you are obviously not sure if it'll work.
to give you the benefit of the doubt, suppose you do have something and you KNOW it works. in this case, why the hell would you go to the hedge fund? it's stupid to give it away like that. you say you can get a job and work for 3-5 years to save some trading capital. just do that. you KNOW your strategy is going to work, right? so you delay becoming a millionaire for 3-5 years. big deal.
if you reveal the strategy to the hedge fund, you get what? $300-500k your first year and then they decide they don't need you anymore.
Yes, just like you hire a programmer to figure out a certain algorithm, says he can't figure it out, he leaves, has gained knowledge of your system and then goes off and starts his own fund or sells what he learned from you.
You surprisingly summarized my entire thought process in one paragraph. I know that there must be a few exceptional minds who made it trading with scared money. But, I keep hearing the more pessimistic view that no one can succeed when he trades the money he depends on. I totally appreciate the positive spirit.Quote from timmyz:
you have a strategy with 5+ sharpe and you say you KNOW it works yet you are afraid to borrow $10k to trade it?
you are obviously not sure if it'll work.
to give you the benefit of the doubt, suppose you do have something and you KNOW it works. in this case, why the hell would you go to the hedge fund? it's stupid to give it away like that. you say you can get a job and work for 3-5 years to save some trading capital. just do that. you KNOW your strategy is going to work, right? so you delay becoming a millionaire for 3-5 years. big deal.
if you reveal the strategy to the hedge fund, you get what? $300-500k your first year and then they decide they don't need you anymore.
Quote from vita:
You surprisingly summarized my entire thought process in one paragraph. I know that there must be a few exceptional minds who made it trading with scared money. But, I keep hearing the more pessimistic view that no one can succeed when he trades the money he depends on. I totally appreciate the positive spirit.
what does scared money have to do with this? you have a strategy and you KNOW it works, right? if you know it works then $10k, $100K, $1 million is nothing. maximum position size. go go go.
That is exactly one of the offers I got going like "we are a team here, we will give you a programmer to help you "automate" your strategy and make it better...etc. Of course I responded that I won't need any help. The point is that the whole dialog starts and runs on mistrust. Not a preferred forum to remain objective.Quote from wave:
Yes, just like you hire a programmer to figure out a certain algorithm, says he can't figure it out, he leaves, has gained knowledge of your system and then goes off and starts his own fund or sells what he learned from you.