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Quant development: Algo Trading as a solution

(Last Updated On: October 21, 2011)

Quant development: Algo Trading as a solution

Hey guys,
Have you ever sold an algorithmic trading solution? Is it a common thing? I mean, what if you don’t want to start a hedge fund (or algo trading fund), and you just want to sell the system/algorithms that you developed?
Who would be your prospects?
Do you know how long does the selling cycle takes?

It depends on how successful the “trading solution” is. Many other factors like, what language, what connection, any backtests, what Sharpe, what instruments, (stocks, FX etc) If you got something viable, we can talk.

 

I used to recruit sales people into the financial software world and I know a lot of sales guys in this domain.

My advice to you would be that
1) your first sale will be the hardest, you need a reference site before you can gain any credibility.
2) Integration is a massive issue, have you thought about security, how it will sit in a clients infrastructure, how will it be supported? This is some of the reasons why people go for bigger companies rather than boutiques. What happens if you decide to go on holiday or decide to do something else.
3) why would someone want your algos? What evidence do you have that they will add value more than they have existing and the competition has (bearing in mind getting that info will be really tough)

What many people have done and how many start up works is to do a project for a hedge fund as a vendor, but strike a deal to keep the IP.

All you need is a very trusting hedge fund manager!

it all sounds so easy. Good luck

 

Trade your own account with it and make money that way no need to sell it! As you make money, you also gather evidence its a viable ststem. As time goes you can tweek and even create other systems.

Some strategies with shorter time frames require direct access to exchange and precise execution, so won’t be profitable while traded with own money.

 

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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