What to do?

Quote from Redundancy:

Hello all. Long time reader first time poster here. I have come across a few threads where the OP has some interesting job opportunity and presents it to the elite trader community for some advice. Well that is what I am doing.
Right now I am prop trader, I put up a little money and got some buying power. I have been in this situation for the last 3 years. Currently I have 3 fully automated programs that have performed extremely well over the last 18 months or so (3-4k a day). With my current deal I keep 90% of my profits which is nice. I have been approached and have been presented a interesting job opportunity. It is at a prop firm that pays a salary (200K) and pays out 50% of profits. Now I know that sounds shitty but this situation offers more then just the immediate financial rewards. I will be provided with the infrastructure as well as the access to great research, programmers etc. I feel that going this route the financially rewards down the road will be great, but the only thing is now I will have to answer to someone.
So what do you guys think, I know the decision lies with me, but I would like to hear from anyone who has been in this situation and if it did or didn't work for them.
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I was in IT 35 years before trading full time. I saw your case over and over. You obviously have talent. No one pays 200K a year unless they intend to pick your talent clean. You will be expected to reveal what you know and will be under a great deal of pressure to deliver. It makes no difference to them where the code comes from. It can be from your black box or from your head. It’s the concepts they want to patent. If you can’t produce you will quickly be put on the trash heap.

Don’t believe for a minute bigger is better. It is too easy to believe the snow job “of all you get.” If your model works for 3-4K a day you have enough to out grow them in the long run. Why add a ball and chain based on a few weak promises. What you are losing far out ways any gains.
 
don't sell out, just use your own money, what kind of size are you using to produce your 3.5k / day~~ is it scalable~~ if it is super scalable, like to 50k+ / day that is only way you'd really need to go out and raise any money, otherwise just lever up yourself every once in a while and put your last two months p&l at risk to give yourself double the size for a month, if you survive the first month you can just keep going from there. do that 4-5 times over the next 2-3 years and you are already at 50k/day

i took my system from 1k/day value at risk to 125k/day in 3 years and then in the 3 months after lehmen went under took it all the way back down to 6k/day to protect my winnings, now i'm levering back up, doubled to 12.5k/day this month planning on going for 25k/day at labor day if no bumps til then. don't work for someone else if you can trade on your own, just more hands in the cookie jar.
 
As other have commented, it really depends on whether your automated system is scalable to 10x your current size. If that's the case, I would ask for a big sign-on bonus ($1 Million at least). If the system is truly scalable, the firm will make the $1MM back in less than 2 months.
 
dilemma delimma.

I make big dough every day, now I am facing the delimma between the big dough and the bigger dough.

Isn't life a bitch.
 
Wow, didn't expect this many replies. Thanks for everyone's input. All 3 of my systems is are very scalable, as well as the number of the symbols that I could be trading that is the reason why this offer has been put forth. The sign on bonus is an interesting idea, I will have to bring it up to see what their response will be. In regards to picking my brain and knowing the logic, what I do is relatively simple as I believe most high frequency models are. It will be the parameters that would have to be duplicated, and unless they can see that I don't foresee how this might be a problem. But this has been brought up by a few of you so this must be a real issue. And I hope I am not coming across as a little bitch, I just don't want to make a decision I will regret later.
 
I don't see any reason why they wouldn't just hack into your blackbox system and take the code? At which point, what do they need you for? I wouldn't consider this without a sign-on bonus.
 
Why not just reveal your code to your closest friends, right here on ET.

If I was making 4k a day watching a box blink I would not be here asking a bunch of clowns silly questions.


amazing how much bandwidth there is here saying how brilliant they are, and next to nothing of value for anyone else to use.

bullshitter.jpg
 
Quote from Fast_Trader:

I don't see any reason why they wouldn't just hack into your blackbox system and take the code? At which point, what do they need you for? I wouldn't consider this without a sign-on bonus.
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Like I said before, its the parameters that really makes the models work, which can be changed on the fly and is not contained in the source code. There are many traders at prop firms and IB's, I wonder how they protect their ideas and models, or do they usually become property of the firm?

And for stock777, there are many successful traders on this site, so why not ask and hope one of these trader's gives me some good advice. I never claimed I was so brilliant and I hope I don't come across that way. You also make the point that I haven't given anything of value for others to use, may I ask what value you have added with that comment? When I come across a thread where I am able to present some useful information I will, since ET has helped me a lot in my trading if you shift through the shit. Just please don't turn this thread into trash. Just trying to get some advice and hopefully it might help others in the position.
 
Assuming 3000 avg profit a day (the low end of your claim) thats 600k a year easy money,

You should be selling this for millions, not bothering with pikers.

You say it scales and is robust, so thats what its worth, if its real.


As for value, well, I see a lot of posts that claim amazing systems, large profits, and never a detail that would provide value to the reader.

Those posting details are usually the cranks. I won't mention names.


PS If I was trying to find suckers to offer me money for my system I'd post something just like you did.

I'm not suggesting anything, just sayin'


PPS what do you do with the Million or so you've made already, I need a good place to park my stash, and rates in money markets stink.
 
Quote from stock777:

Assuming 3000 avg profit a day (the low end of your claim) thats 600k a year easy money,

You should be selling this for millions, not bothering with pikers.

You say it scales and is robust, so thats what its worth, if its real.


As for value, well, I see a lot of posts that claim amazing systems, large profits, and never a detail that would provide value to the reader.

Those posting details are usually the cranks. I won't mention names.


PS If I was trying to find suckers to offer me money for my system I'd post something just like you did.

I'm not suggesting anything, just sayin'


PPS what do you do with the Million or so you've made already, I need a good place to park my stash, and rates in money markets stink.
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Just so we are clear, I am not selling anything. Never will. And why should I provide any kind of detail about my models. This thread is not about my models, but it's about staying independent or going to work for someone else for potentially higher financial rewards.
I am not sure where you get off putting forth the idea that I am looking for suckers to buy my "system". Here you want some details, one program does breakouts and breakdowns, one is mean reverting and the other is market neutral. They are all intraday. Like I said they are nothing complex, and have all been done before this is just with a little twist.
As for what I have done with my money...I spent it like any other young trader would, fast cars and fast women.
:D
Now hopefully we can get back to what the thread was intended for.
 
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