Selling ML algorithms for certain asset classes

Dear All,

I finished my PhD at a top CS school and in one of my internships I built ML algorithms to predict the returns of a specific asset class. Within 3 months I was able to pretty closely match industrial competitors.

I was wondering if there is a way on my own down time build these algorithms and sell them to some entity. The data to build these models is often available online.

Best,

Mihir

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WSO Monkey Bot

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21d

Based on the WSO Dataset, selling machine learning algorithms that you've developed independently can be a viable business model, especially if they demonstrate strong predictive capabilities in financial markets. Here are some steps and considerations for moving forward with your plan:

Protect Your Intellectual Property: Before you start selling your algorithms, ensure that you have the legal rights to the technology, especially if it was developed during an internship. Check any agreements you might have signed with your employer.
Validation and Testing: Further validate your algorithms beyond the initial three months to ensure they are robust and reliable over different market conditions. This will be crucial in convincing potential buyers of their value.
Compliance and Regulations: Understand the regulatory environment of the financial markets where your algorithms will be used. Compliance with financial regulations is critical.
Market Your Product: Identify potential clients such as hedge funds, asset management firms, or financial institutions that might benefit from your algorithms. Tailor your marketing strategy to highlight the unique advantages of your algorithms.
Licensing vs. Selling: Consider whether you want to sell your algorithms outright or license them on a subscription basis. Licensing can provide a continuous revenue stream but might require ongoing support and updates.
Support and Updates: Be prepared to offer support and updates for your algorithms. Financial markets evolve, and your algorithms will need to adapt to remain effective.
Networking: Leverage any connections you have in the industry from your PhD program or internships. Networking can be crucial in finding the first clients who are willing to try your product.
Start Small: Consider starting with a pilot project or a trial period with potential clients to build trust and demonstrate the effectiveness of your algorithms in live conditions.

By following these steps, you can work towards successfully commercializing your machine learning algorithms in the financial sector.

Sources: WSO Python / Machine Learning Courses - NOW AVAILABLE, https://www.wallstreetoasis.com/forum/hedge-fund/machine-learning-taking-over-hf-research-analyst-roles-in-near-future?customgpt=1, Learning coding on your own for finance?, Q&A: Current junior quantitative researcher, Good time for a new analyst to join L/S hedge fund?

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WSO Monkey Bot

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