Quant stock trader looking for leverage on a $500k account

S

szasz

I´ve started trading stocks on my own account ($500k) back in Sep/09 using a long and short quant method (overnight positions only) that I´ve developed in an investment bank (8yrs experience).

Up +7% in 3 months, biggest drawdown -1.4%. Daily P&L stats recorded.

Most of the time, I´m long $500k and $500k short (can get only 2:1 margin).

I´m looking for 4:1 margin to be able to go $1mm long and $1mm short, with a $500k account.

Anyone could help me?

Thx
 
Quote from szasz:

I´ve started trading stocks on my own account ($500k) back in Sep/09 using a long and short quant method (overnight positions only) that I´ve developed in an investment bank (8yrs experience).

Up +7% in 3 months, biggest drawdown -1.4%. Daily P&L stats recorded.

Most of the time, I´m long $500k and $500k short (can get only 2:1 margin).

I´m looking for 4:1 margin to be able to go $1mm long and $1mm short, with a $500k account.

Anyone could help me?

Thx
More...

Any firm offering portfolio margin (PM) can give you much more leverage, if you meet their requirements and are trading a "statistically diversified" portfolio. Penson-cleared accounts, as well as Interactive Brokers, may be willing to give you a PM account with that level of equity.
 
Quote from jho:

Try Bright Trading
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Yeah, last time i checked Bright gave 6:1 leverage without any fees for overnight trades as long as half was short and half was long.(if you go anymore, they charge you hefty interest) You will have to pay desk fees ($200 per month last i checked, but might be more now) plus you pay SEC fees on your trades and i think they still charge .01 per share which will be kind of expensive for a 500k account with 6x leverage. Assuming you were buying a $50 dollar stock and using the full 3 million, thats a $600 commission!


But like i said...things might have changed over there. Its been a good 4 years since i traded with them.

Oh...you will need to get a series 7 license if you go with them, too.
 
Quote from peilthetraveler:

Yeah, last time i checked Bright gave 6:1 leverage without any fees for overnight trades as long as half was short and half was long.(if you go anymore, they charge you hefty interest) You will have to pay desk fees ($200 per month last i checked, but might be more now) plus you pay SEC fees on your trades and i think they still charge .01 per share which will be kind of expensive for a 500k account with 6x leverage. Assuming you were buying a $50 dollar stock and using the full 3 million, thats a $600 commission!


But like i said...things might have changed over there. Its been a good 4 years since i traded with them.

Oh...you will need to get a series 7 license if you go with them, too.
More...

Series 7 yes. But up to 10 to one is still less than 1% per year haircut, FWIW. "Can" carry up to 30 to one overnight for slightly higher haircut.

200k shares no $200 monthly fee (always been that way)... and commissions are half (.005/.003) for 2010.

Don
 
Quote from szasz:

using a long and short quant method ... that I´ve developed in an investment bank (8yrs experience).
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Isn't that the property of the investment bank (or did you work for free and without bonuses?)
 
Thx everyone.

Regarding last question, Mr. TraderZones, don't worry, the method was developed by me (if my computer crashes today, I can rewrite the method tomorrow, it's simple, no holy grail), left a copy in the bank for a buddy there, but guess what?

On the first drawdown, the guy decided it doesn't work and stopped trading.

As you probably are tired to read and listen, discipline and adherence is key, not the method.
 
Quote from szasz:

I´ve started trading stocks on my own account ($500k) back in Sep/09 using a long and short quant method (overnight positions only) that I´ve developed in an investment bank (8yrs experience).

Up +7% in 3 months, biggest drawdown -1.4%. Daily P&L stats recorded.

Most of the time, I´m long $500k and $500k short (can get only 2:1 margin).

I´m looking for 4:1 margin to be able to go $1mm long and $1mm short, with a $500k account.

Anyone could help me?

Thx
More...

I basically did the same.

Interative brokers will give you Portfolio Margin for accounts > 100k. Also, if you need to automate, their API is quick and easy to work with.

If you are fairly sector neutral, then your leverage should approximate > 5:1 no problems
 
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