• TIME TO 2024 UK RANKINGS

  • C++ Programming for Financial Engineering
    Highly recommended by thousands of MFE students. Covers essential C++ topics with applications to financial engineering. Learn more Join!
    Python for Finance with Intro to Data Science
    Gain practical understanding of Python to read, understand, and write professional Python code for your first day on the job. Learn more Join!
    An Intuition-Based Options Primer for FE
    Ideal for entry level positions interviews and graduate studies, specializing in options trading arbitrage and options valuation models. Learn more Join!

Trading Algorithm implementation help

algorithmania

Joined
11/13/12
Messages
4
Points
11
I need some opinions on my situation. I have an algorithm that I have developed on my own and now have started some backtesting. No one has given me any advice or input in developing this algorithm.

However, I am working with a friend of mine that is more educated with computers ( he has a masters in computer science). So I have consulted with him on some coding specifically with historical data retrieval. He has not seen my algorithm or any code that I have created (using Matlab currently).

The results from the backtests show real promise of producing real money. At this point, all my friend has provided is purely some IT help and consultation. If everything stays the same from this point to the time where the algorithm is profittable, what is adequate compensation for his contribution? Keep in mind that he had zero input with developing the algorithm.

It was my hope that we would have a partnership. He would teach me all the computer knowledge and I would teach him how to write algorithms because I believe he is more than capable. However, he is not contributing like I thought he would be at this point. So I don't want to show him the algo since he isn't providing anything of equal value.

I need to guard my algo for scalability reasons in the future (i.e. if 2 people run the same algo, the order size is limited).

The next thing on the to-do list is to put the algo in the optimal laugage which I had planned to let my friend do. Now I am having second thoughts.

Any comments or opinions would be greatly appreciated. Thanks!
 
@ alain
50% split would be way too much since I have done 100% of the algorithm development.

@ Tom
No specifics have been discussed or promised. I'd like to think it doesn't have anything to do with incentive. My friend is very busy with his own life. He is still taking classes and working on a dissertation (PhD student).
 
Maybe test out some of the on the cloud services that allow you to upload your algo and handle the rest. I know you want to keep your sauce secret but at some point, you may want to maximize the profit before it is no longer viable.
http://quantconnect.com (the founder is a member here)
http://www.algonaut.com/

This is not a endorsement of any of the services above which I have no first hand experience using them.
 
algorithmania said:
@ alain
50% split would be way too much since I have done 100% of the algorithm development.

@ Tom
No specifics have been discussed or promised. I'd like to think it doesn't have anything to do with incentive. My friend is very busy with his own life. He is still taking classes and working on a dissertation (PhD student).
Click to expand...
without him you wouldn't have anything done.
 
Back
Top