Should I pitch my trading system to a hedge fund?

If you're really confident, don't EVER share it with anyone. Instead just keep going with it and make money for yourself.

>>1812857
Trade for a hedge fund but just tell them you go by your gut.

>>1812857
Kill yourself retard. Is this a troll?

>>1812878
>>1812873
This is the real answer. Pitch your RESULTS to a hedge fund and try to get capital, never reveal the source code/strategy you have.

>>1812857
You were the guy that was saying "My trading system works!!" Just because it "works" doesn't mean it's a good system.

If someone you knew said that they drove to work at 100 miles and hour instead of 50, hey would say "Hey, I got to my destination in half the time, my system works!", Would you hop out of bed and immediately try his system just because it "worked"?

No, it may work for now, but keep it up and you'll get killed eventually. I don't think hedgefunds are going to be very impressed and neither should you.

>>1812857
get a loan and make mad dosh by your own.

why the fuck anyone with a gold mine like yourself be stupid enough to share it.

>>1812857
>It has a success rate of 60% with a P/L of 13 meaning losses are very minimal when they happen. How much would they give me?

P/L of 13 - what do you even mean by that?

what's the sharpe ratio? How long have you been trading the system live? What markets do you trade? Can you show a broker statement to back up your claims? What is the capacity of the system?

If you've genuinely got a a consistent way to make money that has a lot of capacity to ramp up the size a bit then you shouldn't have too much trouble finding backers. But you'd probably better learn to present it better.

If it is really profitable with low drawdowns, high sharpe but scaling it up too much would hurt that then you're better off not going to a hedge fund, you'd be better off talking with prop firms and getting to keep a much larger % split (albeit on smaller size).

In either instance you protect your IP - if it is legit then one approach is you set up a company that owns the IP to the system then leases it to some other legal entity either owned by you or jointly owned with your backers or simply leases it to the backer and you trade it. If automated then you don't want it on their servers but do want access to some gateway via their servers - if it needs low latency access you need them to sponsor direct access to exchanger servers for you. Even if it is providing you with signals and you're manually executing them you don't want it on their servers, or at least not any uncompiled code, but ideally none at all.

The thing is, there is a very good chance you don't have a profitable system... there is a much better chance that you've got one if you've already been trading it live, on a real exchange for a year.

>>1812873

that isn't necessarily optimal at all

sure maybe if it is ridiculously profitable but can't be scaled well, but otherwise, if he's genuinely found an edge that can be scaled up and isn't exactly going to double his money/give exponential returns (frankly it is more likely to be in this camp) then doing that while earning a % of XX million or even XXX million can be much more preferable to trying to double up your 10k account in a few years.

>>1812857
hedge funds arent stupid. whatever you thought of, they already know. also hedge funds are the ones who often make your "trading system"s work. using technical analysis on the price action they created themselves don't make any profit.

its like if you tried to sell 3m shares on a stock with 15m float, thats obviously going to drop the price of the stock significantly. other people who can anticipate this sell off will make a profit short selling the stock.

but if you try to short sell the weakness of the price that YOU created, you'll just be covering into your own sell orders.

its like taking money out of your own wallet to put it back into your own wallet.

thought you got killed my man pls gib dank heater

>tfw made 10k on STEM

>>1813582
consider however that firms are in competition with one another. If your technical analysis can consistently make money off the price action generated by three major firms, then a fourth firm would be interested in this strategy as they can rely on the price action generated by the others to propel the system.

This isn't even outlandish, because in fact many prop trading firms are entirely aware that many of their niche-sector-specific algorithms are detecting technical analysis patterns generated by the actions of key market players, and feed off these actions and adapt to them, going so far as to make ansatzes (educated guesses from which to work from) on the basis that major firms have predictable trading philosophies

>>1813587
the fourth firm would be scalping it for what would be equivalent to a few bucks. hedge funds don't make big bucks off of the strategies that day traders use. they take large positions with a thesis based on fundamentals.

then they have to create an entire price action, and trick others into taking a position, and exiting their positions on a loss using manipulative technical strategies.

see the history of DRYS, IDXG, ETRM over the past 3 months. this is what hedge funds do

>>1812857
take it to maverick trading or a similar prop trading firm. they'll fund your account and let you keep like 75% of what you earn.

60% ?

My system is like 85% or better.
Matter of fact, last year my losses were about 4%. My gains were over 70% for the year.

And that's mainly from swing trading penny stocks.

I call it BLSHit, it stands for Buy Low Sell High It. The "It" being the stocks.

>>1813925
>swing trading penny stocks
Cool story, bro.
I made 145% last year swing trading lottery tickets.

>>1813618
actually a lot of work by quant researchers in hedge funds is around getting into large positions without moving the market much/creating 'price action'

There are plenty of funds out there who are open to people pitching ideas, it is just you're highly unlikely to have much to offer them if you've not already got industry experience.

>>1814384
true. the point is hedge funds can be extremely sophisticated. they have endless resources of PHD mathematicians, programmers, etc. all working together. and they're very good at manipulative psychology.

you cannot out think a hedge fund. sure, you can take advantage of what they do by analyzing how they work and profit off of them, but they're fully aware of that.

>>1814528

I don't see your point - plenty of people pitch ideas to hedge funds, there are hedge funds that exist now where PMs and their teams are essentially mini hedge funds within the company siloed off from the rest of the firm.

Main point is that OP would be much better off with some industry experience first as it is highly unlikely he's got anything worthwhile pitching. But the idea that hedge funds are flawless entities that can't be challenged is nonsense.