I work at an IB as a mathematician working on high frequency strategies. Some of the strategies I have developed on my own have been performing quite well and I have been unable to convince upper management to give me a direct cut for those.
Just wondering, how can I take my trading ideas to someone ? Meaning how can I prove my track record to someone else who is willing to give me a cut for my work ? I am not sure my employer would be willing to give me pnl information of various strategies I have worked on.
How to establish a track record
-
MMopt
- Posts: 0
- Joined: Thu Jan 01, 2004 12:00 am
How to establish a track record
They won't give you the track record of P&L and have little incentive to do so. My recommendation would be to interview with a fund that not only considers track record but interviews for future potential and general creativeness/intelligence. Problem with most hedge fund incubators/silos is they are looking for a general track and invest in new PMs no matter if the strategy is replicated from either a boss or co-worker, when the strategy fails they let the person go (overall less worried about quality but rather returns). On the other side you have funds that build teams to work together and may give you an implied cut but because there is other input and less risk you'll have less upside, there are more funds like this but it wouldn't be much different than your current environment.
Shoot me an email if you'd like advice directly applicable to your situation. mattmoyemmoyeconsultingcom
Shoot me an email if you'd like advice directly applicable to your situation. mattmoyemmoyeconsultingcom
"So I went the white boy way of slinging crack rock. I became a stock broker"
-
andre_the_giant
- Posts: 0
- Joined: Thu Jan 01, 2004 12:00 am
How to establish a track record
The value of the strategies themselves might not be that transferrable since they are already known to your employer, but the experience of developing them and the ability to develop them would give you more leverage in a smaller group.
In terms of getting a cut for your strategies, it's probably pretty hard - you have to trust someone else's accounting and execution. For example - how do you know they are performing quite well?
We are a little different than most I suspect, as we have copied a page from the Silicon Valley book of best practices, and we grant new employees vesting equity (with a 1 year cliff in case they turn out to be useless) - partially for motivation, but mostly with retention in mind. It also keeps risk a little more in check from year to year, as a cash payout for a strategy that works well in one year and blows up the next would be less-than-ideal - equity ownership tends to reduce that - or so the theory goes.
Shoot me an email if you want more detail
In terms of getting a cut for your strategies, it's probably pretty hard - you have to trust someone else's accounting and execution. For example - how do you know they are performing quite well?
We are a little different than most I suspect, as we have copied a page from the Silicon Valley book of best practices, and we grant new employees vesting equity (with a 1 year cliff in case they turn out to be useless) - partially for motivation, but mostly with retention in mind. It also keeps risk a little more in check from year to year, as a cash payout for a strategy that works well in one year and blows up the next would be less-than-ideal - equity ownership tends to reduce that - or so the theory goes.
Shoot me an email if you want more detail