Selling my stock picking algorithm to hedge funds/investment firms. Where do I start?
I'm a C++ programmer and my friend and I recently made a nice little trading strategy that was able to gain 5000% over a simulated trading period and in another experiment, turned $5000 into $100,000.
I know hedge funds get hit with scores of these things daily but we've both back-tested our strategy as well as on current live data and they both work well.
I'm trying to sell it to hedge funds, much cheaper than what they're paying their own programmers. Anyone ever heard of hedge funds buying stuff like this from people? Where should I start?
Why not just use it on your own money?
We just wanted to make the quick buck and get out...maybe latch on later as consultants. Plus, we don't have enough money to really make something out of it so soon...trading isn't really part of our longterm career interests really. Kind of just want to get it over with :D
5k to 100k... Take that 100k and make what.. you calculate ;)
I guess you can go to them directly or make a few phone calls and ask. Best suggestion I believe.
i wont do it myself but ill sell you the strategy for 5k.
$10
Deal or no deal?
There are a lot of technical challenges in creating simulators that are still open problems for the industry. These problems include modeling for your impact in the market, transaction costs, etc. I wouldn't be surprised if the algorithm lost money in live trading. In fact, I'd bet that it would.
I think you posted this on the wrong forum, here you go:
http://forum.bullshit.com/
i'll up the bid to $11.
I'll offer 11.50
I don't really know anything about trading, but I am really good with C++ and it would take a good trader about two weeks to learn everything you would need to know to write it yourself.
It's mathematically impossible to go from 5k to 100k. That would mean your beta needs to be like 2300%. Even then it's imossible. Imagine finding the highest rising stock and putting all your 5k in that. Even then you would've probably doubled up or tripled up at best, giving you 15k.
Plus the kid has 2 posts and its a new account. Goddang trolls.
it was 100k over a simulated 10 years based on historical data
That means this algorithm only makes about 40% annually. Not too shabby, but stating a giant percentage increase without including the time period is just sensationalist.
I realize this is an old post, but I'm trying to do the same thing. I have a few algorithms that I've backtested, and I have no interest in selling these to anyone. Even with a modest starting investment, after a couple of years it would be worth big money. Unless they'd be willing to go pretty huge on the purchase price, I'd just use it for myself.
back testing =/= live trading
Testing rarely gives you realistic market data. The impact of market psychology can't be simulated.
sounds like you have no clue what you're doing. so, if you have a PhD from a top tier school in a totally unrelated yet supposedly impressive science or science-y sounding thing and you're able to reference obscure-sounding theorems (eg. Chernkowsky-Yang Conjecture) in your materials, i'd say your chances are good!
This is awesome. I remember when I was 12 and discovered trading. I actually started out studying computer engineering, and I thought that I would find the holy grail also.
So you back tested your results.
Whats your percentage of "right" in the model? What is your average capital commitment to each position?
two things: Slippage the market's ability to remain irrational longer than you can remain solvent
5k-100k in 10 years... what products/markets you trading? whats the capacity? may not work with big numbers. easier to make 1 buck to 10 bucks. not as easy to make 10mm outta 1mm...
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