Profitable model - what deal is possible with existing portfolio managers?

Jul 15, 2008
10
1
13
Slovakia
#1
Let’s say I have a model which did 40.11% CAGR with max draw 10.70% since 2010 in static portfolio of 24 markets, annualized Sharpe is 1.47 and positive skew is 0.95. I have 4 months of live results for now, but I am planning to have at least 1 year.

I would like to manage larger capital for a fee, but I don’t want to start a fund, since I am not a businessman but inventor/engineer. Many funds went down, because engineers started them and could not run them later. They lacked qualifications.

If I would to go to portfolio manager in licensed hedge fund/CTA and offered my expertise to create such returns, what deal (if any) I can count on? What is the standard? How to approach it?

If this would not work what are my other options apart from prop firm? This model’s trade duration is on average 10 days, so it is not suitable for prop firms earning on intraday volume.
 

Pat494

Well-known member
Mar 27, 2004
13,135
1,246
223
#5
Looks like the "old fashioned" method of a smart suit and tie and call in on Funds Headquarters to allow you to show them your whizzo program.
If you don't like all the strings attached they would put on you I suggest you find a friendly trader who can actually earn money with it on a 50/50 basis. Have to trust him though and get an enforceable contract.

Your system would have to be a lot better than the trader's existing method to make changing worthwhile.

Good luck
 
Last edited:

Quantt

Active member
Jul 23, 2017
945
57
38
#6
Let’s say I have a model which did 40.11% CAGR with max draw 10.70% since 2010 in static portfolio of 24 markets, annualized Sharpe is 1.47 and positive skew is 0.95. I have 4 months of live results for now, but I am planning to have at least 1 year.

I would like to manage larger capital for a fee, but I don’t want to start a fund, since I am not a businessman but inventor/engineer. Many funds went down, because engineers started them and could not run them later. They lacked qualifications.

If I would to go to portfolio manager in licensed hedge fund/CTA and offered my expertise to create such returns, what deal (if any) I can count on? What is the standard? How to approach it?

If this would not work what are my other options apart from prop firm? This model’s trade duration is on average 10 days, so it is not suitable for prop firms earning on intraday volume.
You'll have to back test more, your are basically tested only in a bull stock market... Do at least 1 full market cycle to see how this is going to perform in a bear market...

After all that, get a second mortgage, loans, money from friends and family... you should be able to round up 500k to a 1mil to start I would guess... Automate the whole thing and let the compounding make you a very rich man in 10-20 years...
 

OnlyScott

New member
May 3, 2018
7
0
1
#7
"I have 4 months of live results for now, but I am planning to have at least 1 year. "

I think that is the problem. I invest in some individuals but I need track record usually of atleast 2 to 3 years live trading. In that 2 to 3 years i need to see atleast 700 trades. Swing trading records i need atleast 5 min. Very few people will take a chance on you with 4 months live
 
Mar 19, 2002
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11
London
#8
The pool of individuals with a good record over 5 years swing trading their own capital, who then need external capital, and have not yet been approached, must be very small?
 

OnlyScott

New member
May 3, 2018
7
0
1
#9
The pool of individuals with a good record over 5 years swing trading their own capital, who then need external capital, and have not yet been approached, must be very small?
Yeah, but you need atleast a couple of years with a good record. Think of it like a business, either have the ability to sell your product or idea to investors. However, most business take a couple of years building their brand.