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So I created this software...

How do I negotiate with an investment bank the use of a cutting edge software I created able to predict securities optimization?

I contacted a few lawyers dealing with Hedge Funds but they offer services to CREATE one, not approach investment firms for a possible deal.

So far LIVE testing with a few K shows me 11 out of 12 trades being positive for a cumulative gain of 30%+ in about a month. Of course scaled up this will be more challenging but who knows.

I believe I may have made some key discoveries too. Of course all of this is confidential. And I want to only talk to people who matter.

I not only found new ways to implement A.I. for finance but also was able to optimize the way some strategies are used for financial gains.

So far my testing has been done with equities but I want to switch full time on this and experiment with FX and commodities.

My background is a Honors in Mathematics and Computer Science followed by a Masters in Computer Science, and personal interest in A.I for 15 years now.

My career has been a constant upswing for that period, even in the darkest of the financial crisis and the highest unemployment, which probably testifies to my talent... but I also realize I can do so much more now :)
 
Are you even remotely serious? If I understand you correctly, taking your claim of a 30% monthly return, even with a thousand dollars as your initial investment, why not just let that sit for 12 months and take the ~$20K you'd apparently have earned? You could live on the passive income. Better yet, invest your $1,000 and wait two years, take the cool $500K and buy yourself a place on a greek island when they default. Presumably, someone with your talent has done some good backtesting of your strategy over a longer period than a single month, and additionally, would realise that with a 30% monthly compounding return, you'll be richer than God in just 3 years, having turned your intial investment into a very boast-worthy $12.5Million. Sell your software then, I'm certain you'd have no shortage of potential buyers. Sigh.
 
How do I negotiate with an investment bank the use of a cutting edge software I created able to predict securities optimization?

I contacted a few lawyers dealing with Hedge Funds but they offer services to CREATE one, not approach investment firms for a possible deal.

So far LIVE testing with a few K shows me 11 out of 12 trades being positive for a cumulative gain of 30%+ in about a month. Of course scaled up this will be more challenging but who knows.

I believe I may have made some key discoveries too. Of course all of this is confidential. And I want to only talk to people who matter.

I not only found new ways to implement A.I. for finance but also was able to optimize the way some strategies are used for financial gains.

So far my testing has been done with equities but I want to switch full time on this and experiment with FX and commodities.

My background is a Honors in Mathematics and Computer Science followed by a Masters in Computer Science, and personal interest in A.I for 15 years now.

My career has been a constant upswing for that period, even in the darkest of the financial crisis and the highest unemployment, which probably testifies to my talent... but I also realize I can do so much more now :)
Hi, I am a senior student major in economics and mathematics dual degree program, and personally interested in programming, proficient in Java. I have been an intern quant in Moody's. In my department, we also design trading softwares about securities, funds, futures and other derivatives. As I am just a starter, I designed three softwares related with securities selection model and timing model. Of course, they are properties of this company and used for business, so confidential. Hope to communicate more with you. Good luck!
 
I got some questions to the OP.

How do you guarantee the security of your code then? I mean, when (as you believe) it proves to be gaining and gaining and gaining 11 times out of 12, some big monster guys will sit down and try to decompile your code, do you really believe your security can resist Microsoft?(e.g.) So as daleholborow said, its better to take advantage for yourself if you really believe in making such gains.

Second of all, why should I (huge investment bank ever ;)) believe in the algo which I'm unaware of, or even worse - becomes available to "the people who matter" (as you say). Hey man, there are many people who matter and if you start delivering the "Vanga secret" to them it will very soon become useless since I hope in "people who matter" you mean large IB representatives who have great power in market.
 
I believe I may have made some key discoveries too. Of course all of this is confidential. And I want to only talk to people who matter.

I not only found new ways to implement A.I. for finance but also was able to optimize the way some strategies are used for financial gains.
Set up a financial software company like Quantifi, Fincad, Numerix.
Offer your products via trial, time-limit offer. Set up sale/marketing team to reach out to firms/individuals to invite them for trials.
My sense is that you are overoptimistic about the results which can be due to overfitted data. You also need to test across products before selling to prospective clients.
 

alain

Older and Wiser
So far LIVE testing with a few K shows me 11 out of 12 trades being positive for a cumulative gain of 30%+ in about a month. Of course scaled up this will be more challenging but who knows.

borrow some money and put this strategy to work. Even at loan shark rates of 10%, you will be rich anyway. You don't need anybody to buy your "secret sauce". If this strategy is as good as you said, why do you want to give it out?
 
The 15-year-constant-upswing genius is asking people in a public forum about how to sell his magical formula. He can find better ways for implementing AI and beating the market, but can't figure out basic idea of compound interest and leverage. Why do I even go to work everyday... :(
 
How do I negotiate with an investment bank the use of a cutting edge software I created able to predict securities optimization?
Purchases decisions are made by individual trading desks, groups. They will be requested by the managers and approved by higher ups.
You don't negotiate with the banks but rather talk to the individuals who may use your software. This is where you need to do research and need a sales team to call and meet prospective clients. You would assign an account manager to take care of each client's need.

I went through the process before when I worked on a trading desk and various data vendors, software firms send salesmen to our desk to pitch and demo their wares. We then request trial test for a month or two before we decide which meets our needs.
There is tons of paperwork to be signed by different parties and the money involved is substantial (hundred thousands or millions for software).
I believe I may have made some key discoveries too. Of course all of this is confidential. And I want to only talk to people who matter.
Sounds to me you want to get beta testers for your not-so-ready software. If it is, offer demo under some contract. If it is ready for prime time, you should be making money instead of selling them.
 
I am a mathematician and yes I understand the insane speed at which I can make gains. Even assuming 5k at 30% per month I will be quickly a millionaire.

But the market won't be able to absorb as well huge amounts.

The code can be secure if I put it on a server and let only someone access the results too... BUT I want to simply negotiate a decent deal with an investment firm or a Hedge Fund, partly as payback for all the years I invested in my work and partly to do something I believe is amazing.

Whoever dominates the Market also has to understand Human Psychology.

Wall Street and AI are one in that sense.
 
For example it told me to buy X and today... poof, +3% which is a few hundred dollars more. Granted I just test for now with a very limited funding.

In theory I could scale it about 100 times more without any noticeable effect on the securities I manipulate.
 
Mate, you're killing me. Let me contrast what you're saying another way. Buffett has averaged 26% returns ANNUALLY for 50 years. He's top 3 richest guys in the world. If you honestly believe that your system exceeds his ANNUAL performance every MONTH, then I would suggest one of two things:
a) You're going to need a big harbour in which to park all your gold-plated, martini-sipping-stripper-filled yachts, or
b) You're getting high on your own supply.
 
Mate, you're killing me. Let me contrast what you're saying another way. Buffett has averaged 26% returns ANNUALLY for 50 years. He's top 3 richest guys in the world. If you honestly believe that your system exceeds his ANNUAL performance every MONTH, then I would suggest one of two things:
a) You're going to need a big harbour in which to park all your gold-plated, martini-sipping-stripper-filled yachts, or
b) You're getting high on your own supply.
...and if your hedge fund produces 30%/mo returns, where can I submit my resume?

No system is perfect. He might be able to make money right now using that system. It may or may not work in future . who knows?

@lan R :"First they ignore you, then they laugh at you, then they fight you,then you win."-Gandhi
 
No system is perfect. He might be able to make money right now using that system. It may or may not work in future . who knows?

@lan R :"First they ignore you, then they laugh at you, then they fight you,then you win."-Gandhi

Thanks... my sample is limited so far.

The backtesting I did on 100+ pathways extending 60 business days in the back gives me about 10% return every month which is more realistic, and also enables to see what a scaling up would do.
 

alain

Older and Wiser
I am a mathematician and yes I understand the insane speed at which I can make gains. Even assuming 5k at 30% per month I will be quickly a millionaire.

But the market won't be able to absorb as well huge amounts.

The code can be secure if I put it on a server and let only someone access the results too... BUT I want to simply negotiate a decent deal with an investment firm or a Hedge Fund, partly as payback for all the years I invested in my work and partly to do something I believe is amazing.

Whoever dominates the Market also has to understand Human Psychology.

Wall Street and AI are one in that sense.
Since you are eager to give you sauce out, this is great. If you want, send me the code so I can test it for couple of weeks and I will have some people lined up.

No big bank will put a dime on anything without first giving it a trial run and by that time your sauce is not going to be secret anymore.
 

alain

Older and Wiser
Thanks... my sample is limited so far.

The backtesting I did on 100+ pathways extending 60 business days in the back gives me about 10% return every month which is more realistic, and also enables to see what a scaling up would do.
hold on a second, you claimed live trading before... am I missing something?
 
My career has been a constant upswing for that period, even in the darkest of the financial crisis and the highest unemployment, which probably testifies to my talent... but I also realize I can do so much more now

I am a mathematician and yes I understand the insane speed at which I can make gains. Even assuming 5k at 30% per month I will be quickly a millionaire.

it told me to buy X and today... poof, +3%

I believe I may have made some key discoveries too. Of course all of this is confidential. And I want to only talk to people who matter.

You are a gentleman and a scholar. I envy your masters advisor for getting to work with someone with so much genius, and yet so much humility.
 
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