Reasonable revenue split as trader

[Palindrome]

I’d love to see alpha male write back... “signed it, thanks guys”

 

[tommcginnis]

How *scalable* is this beastie?

How *variable* are the returns?

Are we selling nuggets to a panner, or the Mother Lode vein to Newmont Mining?

Sheeeeesh, guys.

 

[cvds16]

I’d love to see alpha male write back... “signed it, thanks guys”

doubt that is gonna happen which such monniker lol

 

[sle]

It's a CTA strategy which is expected to return 40% annualized gross

That's very little information. Target volatility? Expected capacity? Is it 40% return on AUM, margin or some form of risk adjusted capital?

I've been running quant strategies since 2012 with my own RIA firm, PhD but no finance professional qualifications or Wall St experience...

If you have experience running capital in a professional setting, you should be more or less familiar with the structures. 10% can be very reasonable in some setting (e.g. global macro with 0.7 Sharpe and infinite capacity) and very unreasonable in other (high sharpe, capacity constrained type of stuff, like HFT).

 

[AlphaMale]

Yes, 50/50 split of fees in other words...

 

[R1234]

these relationships rarely last beyond 12 to 24 months so just take what you can get

 

[AlphaMale]

That's very little information. Target volatility? Expected capacity? Is it 40% return on AUM, margin or some form of risk adjusted capital?


If you have experience running capital in a professional setting, you should be more or less familiar with the structures. 10% can be very reasonable in some setting (e.g. global macro with 0.7 Sharpe and infinite capacity) and very unreasonable in other (high sharpe, capacity constrained type of stuff, like HFT).

Long/Short CTA, not HFT, Sharpe ratio about 2.5, very high capacity (100M+).

 

[AlphaMale]

How *scalable* is this beastie?

How *variable* are the returns?

Are we selling nuggets to a panner, or the Mother Lode vein to Newmont Mining?

Sheeeeesh, guys.

The system rebalances the portfolio once per day so not really HFT, therefore capacity is deemed very large (100M+), Sharpe ratio is currently at 2.5, virtually no DD at all, only traded it for 3 months though but backtesting since 2006 have indicated similar return.

 

[Robert Morse]

If you join the firm, I'd be interested to know what the CTA is, If you do not, I'd like to learn more about you directly. I might be able to find you a backer.

 

[AlphaMale]

Hi Bob, thanks for the note, in this case it's actually for the Chinese market. We're running tests for similar strategy for US equities that looks equally promising.