Post Update - Selling Algorithms to HFs
Hey, I posted on this forum 2 years ago seeking advice on sellingto hedgefunds. Then I also posted again updating on the performance of the algorithms and my journey attempting to sell them to hedgefunds. Because people are messaging me for an update, here it is.
- The algos made ~+32% in 2022 and are up ~+27% .
- I continued to trade my own capital with the algorithms and prop firm capital.
- I paid off all my debts.
- I have a positive now.
- I did not sell/license to any hedgefund although I had a few offers and had my performance reviewed by one.
- I didn’t sell/license because:
- I didn’t like the offers. The percentage I would get would be very small (because I would be taking away from the firms 2/20 fee structure with clients.)
- I don’t have control on the amount they allocate to my algorithms. And it also opens up the risk for them to under report the allocation, and make more money off of me without me knowing. i.e. they tell me its allocated on $10m when its allocated to $200m. Then I get paid for a percentage profit on $10m and not $200m.
- I’m still trading the algorithms, but less focused on selling/licensing to hedgefunds now.
- I’m more focused on my real life passions now, which is what I mentioned in my first post on this forum “ [I’m]… looking to sell them to a to move on to my real life passions.”