What to do with a profitable strategy?

  • Borrow money to scale up. Wealthy friends/family. Mortgage your house. You can deduct your interest costs from your taxes.
  • Find a prop firm willing to back you with huge leverage (not recommended, high risk of strategy being stolen)
  • Sell the strategy. You will somehow need to convince the buyer that it is legit w/o revealing the edge during negotiation.
  • Trade OPM. Set up some kind of mini fund or advisor account structure (I think you can do this at IB) where you are able to charge huge performance fees (50%) and find a bunch of clients.
 
cruisecontrol said:
  • Borrow money to scale up. Wealthy friends/family. Mortgage your house. You can deduct your interest costs from your taxes.
  • Find a prop firm willing to back you with huge leverage (not recommended, high risk of strategy being stolen)
  • Sell the strategy. You will somehow need to convince the buyer that it is legit w/o revealing the edge during negotiation.
  • Trade OPM. Set up some kind of mini fund or advisor account structure (I think you can do this at IB) where you are able to charge huge performance fees (50%) and find a bunch of clients.
More...
Borrow money from friends...
if you want to loose your friend just do it. Sorry, son.
 
Copytrading? I'm hesitant to recommend it, because I haven't researched it yet, but it might be smth worth looking into
 
1957may10 said:
Borrow money from friends...
if you want to loose your friend just do it. Sorry, son.
More...
In 90th in NYC guy borrow money from his mutual friend. Got the 90th crush. Police found him sliced in parts. God forbid...
 
quantprof said:
I’m hoping to get some advice here about where to go with my trading. I’ll keep this relatively brief. I have been trading profitably for 4 years. Annual returns have been 20%. Max drawdown is 2%. Average holding period is several days. Always market neutral. Most volatility is on the upside, so my Sortino (10) is much higher than my Sharpe (1.8). I cannot lever the strategy further, since I already run into portfolio margin limits on a regular basis. The strategy will scale to the low $10s of millions. It is also relatively easy to reverse engineer if you saw the trades, so it would be easy to make myself unnecessary if I shared the strategy.

I would like to do something more than just trade the small amount of money I have that is not in a 401K. However, I have a FT job that I don’t want to quit, so I’m looking for some outfit to partner with. After some looking around, I have not found any natural fit in my area (Southern California).

So what should I do, folks? How can I find someone who wants to do something with this strategy and not screw me over?
More...
You can not transfer your strategy to somebody’s head.
This is like you are putting your brain in ones head. Only you may handle this.
 
1957may10 said:
Borrow money from friends...
if you want to loose your friend just do it. Sorry, son.
More...
It makes sense if you know what you are doing. OP says he has a sortino ratio of 10, positively skewed strategy. Borrowing as much as possible sounds like a no-brainer.

I've personally borrowed money for my trading since I started, and I'm very pleased with the results. As are my lenders, since I pay them rates they cannot find anywhere else.

1957may10 said:
You can not transfer your strategy to somebody’s head.
This is like you are putting your brain in ones head. Only you may handle this.
More...
his handle is quantprof. I'm guessing this is a quant strategy, not discretionary.
 
quantprof said:
I’m hoping to get some advice here about where to go with my trading. I’ll keep this relatively brief. I have been trading profitably for 4 years. Annual returns have been 20%. Max drawdown is 2%. Average holding period is several days. Always market neutral. Most volatility is on the upside, so my Sortino (10) is much higher than my Sharpe (1.8). I cannot lever the strategy further, since I already run into portfolio margin limits on a regular basis. The strategy will scale to the low $10s of millions. It is also relatively easy to reverse engineer if you saw the trades, so it would be easy to make myself unnecessary if I shared the strategy.

I would like to do something more than just trade the small amount of money I have that is not in a 401K. However, I have a FT job that I don’t want to quit, so I’m looking for some outfit to partner with. After some looking around, I have not found any natural fit in my area (Southern California).

So what should I do, folks? How can I find someone who wants to do something with this strategy and not screw me over?
More...


Trenton NJ. You'll know when you see him... a dude in a ratty bathrobe muttering to himself in Mandarin. He's the only dude on here dumb enough to buy into your BS.

Small amount of money after 4 years of a 10 Sortino. F outta here.
 
cruisecontrol said:
It makes sense if you know what you are doing. OP says he has a sortino ratio of 10, positively skewed strategy. Borrowing as much as possible sounds like a no-brainer.

I've personally borrowed money for my trading since I started, and I'm very pleased with the results. As are my lenders, since I pay them rates they cannot find anywhere else.


his handle is quantprof. I'm guessing this is a quant strategy, not discretionary.
More...
In my opinion, you need to have 15k min to start. 5k each day since two days trade confirmation needed. If he is great he may triple it and got 15k per day. For 15k per day he can make $$$ relatively easy. Glad you did your way successfully.
 
1957may10 said:
You son vary smart to make a label, how smart is that.
Go and get educated and polite first and then talk to people and never ever write to me your doomed crap...
More...


My apologies. My cat is going to translate your last.
 
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