Early Stage Start Up Hedge Fund

sasquatch · Post by **sasquatch** » Wed Aug 29, 2012 2:55 pm

I would be interested in having a conversation with you. Please drop me a line at faheysheffieldhaworthcom.

Sas

NeroTulip · Post by **NeroTulip** » Wed Aug 29, 2012 6:12 pm

Well, if you have a clear idea of what you want to do, I'll have a look. The questions you'll need to answer are how much capital you need, what you will do with it, and what kind of return/risk can you provide.

Aleph · Post by **Aleph** » Wed Aug 29, 2012 9:00 pm

If it can be traded on all those time scales why not open an IB account, connect to the API and start generating a paper trail?

Why is the last version that made 100% in six months no longer traded?

I have a hook up as well, stronger on the tech - probably middling on the capital, but to be perfectly honest, I'm on the offer.

If trading with a few day holding period is acceptable to the strat that means that you'd be collecting quite enough edge to cover even retail fees. Get some documented track record, work out any bugs, and collect $200, all while passing go.

Then you'll have the leverage to dictate terms rather than 'asking for a shot'.

Just to be clear: I'm not trying to be an ass; I'm suggesting that before you push a large portion of you're 'career capital' chips into the pot, there are a few things you can do that are strongly +EV.

TSWP · Post by **TSWP** » Thu Aug 30, 2012 10:27 am

Aleph, thanks for your suggestions.

I have considered doing something similar to what you say, but I prefer to go another route (if I can), i.e. a seeding or partnership deal.

TSWP · Post by **TSWP** » Thu Aug 30, 2012 10:44 am

Aleph, sorry I just wanted to clarify further:

"Then you'll have the leverage to dictate terms rather than 'asking for a shot'. "

I totally agree with what you say, but I do think a strategic partner can be very helpful at the start of a business like this.

quantz · Post by **quantz** » Wed Sep 05, 2012 4:10 am

if i may ask, what was your background leading up to the development of your trading system? I think the answer to that question will reveal a lot about how seriously seed partners will take you and whether they're worth pursuing.

also how much money are you trying to raise or would you need to raise in order to do this on your own? if $1-10 million would suffice then I strongly advise you to seek out friends and family if possible. very little to be gained by dealing with institutional investors

TSWP · Post by **TSWP** » Thu Sep 13, 2012 11:23 am

@ Quantz:

I do not have a PhD, if that is what you mean. But I am pretty sure my system is much better than many systems designed by PhDs.

If I could collect 10 millions from friends and families I would not be on this forum.

quantz · Post by **quantz** » Fri Sep 14, 2012 3:40 am

that's not specifically what i meant. what i was getting at was more along the lines of Aleph - the more career track record you have, the better chance of being heard and less vig to pay. raising 10mm from f&f and HNW guys is hard. raising 10mm from professionals is hard and probably costs you 50% equity. just my view after observing a few others in your position (albeit not with 100% / 6 months strategies ...)

Maggette · Post by **Maggette** » Fri Sep 14, 2012 10:02 am

I think I know the guy:). At least I had a quite similar case (a strategy that was advertised to me that supposed to perform equally well over different time frames AND different asset classes)*.

@TSWP you have to understand that your statement are kind of bold. Nobody here wants to imply that you are lying or making it up. But you also have to understand your potential investor: your story sounds to good to be true:).

I just have to repeat what oliver twist and shout said: you are in a much much better position with an "audited" broker statement of an account with real trades. Size IMO doesn't matter that much here (of course, scale does matter when taking to institutionals, but its a start!)

If not, like I think quantz tries to imply, your career track record is important.

IMO back test results alone don't do the trick, doesn't matter how good they are looking.

* I did sent his material to a couple of guys (exactly two, to be exact) I thought who might be interested and do back up traders (one of them is in the VC business? By the way is that considered exotic: venture capitalists backing up traders?)

TSWP · Post by **TSWP** » Fri Sep 14, 2012 10:19 am

@ Maggette

It cannot be me, because I have just started right now to search for seeders/investors ${L_SMILIES_SMILE}$

Thank you for sending the material to some potentially interested people - I really appreciate that.

I think the outcome of this entire thread is pretty clear: everyone suggests me to build first some track record, then approach potential venture partners or seeders.

I did know that is the traditional path but I wanted to try to see anyway if there were potential venture partners or funds willing to take a look at this at an early stage.

In any case thank you all for the directions provided.