What to do with a profitable strategy?

[xandman]

Get fired. Get the corona dollars. Cash in your 401k. Tighten your belt until your nut grows big enough.

If you blow up, get PPP. Try again.

 

[SanMiguel]

Borrow money from friends...
if you want to loose your friend just do it. Sorry, son.

It's lose not loose.

 

[Girija]

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?

Start your own private wealth management and grow. If you are thinking about getting additional education like a PhD, any prior work would accelerate graduation. You can patent an idea and monetize it.
If you are confident you can borrow money and invest. I don't get what you said about 401k.
You are able to develop a quant idea but you don't know how to put it to use? It is hard to believe.

 

[1957may10]

It's lose not loose.

Thank you, got my point.

 

[R1234]

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?

If somebody can reverse engineer it, they will do it 100% despite their assurances otherwise, even with legal documents signed. So I would say your option of leveraging it with OPM is out.

Only possible scenario I see is you just keep it to yourself and grow it with whatever means you have at your disposal. Get a loan, mortgage your house, work a side gig, or whatever.

 

[1957may10]

If somebody can reverse engineer it, they will do it 100% despite their assurances otherwise, even with legal documents signed. So I would say your option of leveraging it with OPM is out.

Only possible scenario I see is you just keep it to yourself and grow it with whatever means you have at your disposal. Get a loan, mortgage your house, work a side gig, or whatever.

Even you do not have to borrow. If you have a few thousand you can start making your nest.
How come you still do not have it, it is surprisingly unbelievable.

 

[cruisecontrol]

If somebody can reverse engineer it, they will do it 100% despite their assurances otherwise, even with legal documents signed. So I would say your option of leveraging it with OPM is out.

Only possible scenario I see is you just keep it to yourself and grow it with whatever means you have at your disposal. Get a loan, mortgage your house, work a side gig, or whatever.

Is it not possible to setup some kind of hedge fund where you can have clients but keep the trades opaque?

 

[R1234]

Is it not possible to setup some kind of hedge fund where you can have clients but keep the trades opaque?

I've looked into that in the past. Cost prohibitive. Plus, investors are scared of putting their money in custody of an unknown private fund.

 

[d08]

Copytrading? I'm hesitant to recommend it, because I haven't researched it yet, but it might be smth worth looking into

This will reveal the strategy, something he doesn't want.

 

[1957may10]

This will reveal the strategy, something he doesn't want.

In his case I would sell the strategy, he can get money and use it.