I'm an individual investor/trader with no formal financial background. I come from the software engineering world, but I do have a passion for capital markets and have been exploring trading ideas since late 2007. I was fortunate enough to discover an arbitrage trading anomaly that doesn't require HFT front of book management, and works "OK" with a typical discount brokers commissions. However, I am not completely satisfied (not making $$$ hand over fist). The anomaly has much more potential, and I not enough working capital. I can see other larger participants extracting from the anomaly, so I am also concerned that overtime the anomaly pool will begin to dry up as more participants discover similar strategies.
My question then is, what is the recommended path someone in my situation should take? Form an LLC to accept investor funds? Start a hedge fund (not sure what that means exactly)? Does one need to have a series XX? Find a salesperson with capital market connections? Find a partner?
I'm based in the San Francisco Bay Area.