Post Update - Selling Algorithms to HFs
Hey, I posted on this forum 2 years ago seeking advice on selling algorithms to 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% YTD 2023.
- I continued to trade my own capital with the algorithms and prop firm capital.
- I paid off all my debts.
- I have a positive net worth 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 hedge fund to move on to my real life passions.”
Hey there! It sounds like you've had quite the journey with your algorithms. It's impressive to hear about the returns you've achieved and that you've managed to pay off all your debts and even have a positive net worth now.
It's understandable that you didn't take up the offers from hedge funds if they didn't align with your expectations or needs. Maintaining control over your algorithms and ensuring fair compensation is crucial.
It's great to hear that you're now able to focus more on your real-life passions. After all, the ultimate goal is to do what makes us happy and fulfilled. Keep up the good work and continue to follow your passion!
Monkey bot is now run by Chat GPT?
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