My algos are up 57% YTD. I want to sell them.
I'm an engineer using algorithms I built. I'm currently the top trader using these algorithms, and looking to sell them to a hedge fund to move on to my real life passions.
But, I do not know where to start. Has anyone sold algorithms to a here or purchased algorithms for a HF? Should I just knock on HF doors? Do HFs search for outside algorithms?
Any advice would be appreciated.
The algos: +57% YTD, Max DD 6% FX based, built on 14yrs of data yrs, live performance 2yrs. Fully automated.
I know versions of this questions have been asked before
- I'm ready for negative responses and deflections. So I'm going to answer common questions here.
- Q: Why don't you trade it yourself if it's so good? A: I am, but 1% of 10,000 is much smaller than 1% of 1,000,000.
- Q: If the algorithms work why sell them? A: I made the algorithms to be sold to fund my engineering ventures (aka my real dream)
- Q: What about strategy decay? A: I trade a portfolio of strategies. All strategies decay overtime, so it is expected to experience strategy decay. But no one knows when that would occur ahead of time.
- Q: What about scalability of the portfolio? A: It's hard to determine if this portfolio can scale to X, without knowing what X is. I believe this will be apart of the due diligence of the potential buyer.