I have been working on automated strategies lately. Based on a technical analysis of historical EOD data, I have found 3-4 trading patterns that, based on backtesting, should be extremely profitable. I am trying to set up meetings with hedge funds, and so far have had one bite - meeting is next week.
The way I see it, assuming that the algos are for real, there are a few options:
1) I go and work for a prop. trading firm, take my algos with me.
2) I sell them the IP, and take some cut of profits.
3) Try and raise capital to do something solo.
Regarding #1: Is anyone aware of typical deals when taking IP like this into a job - obviously in some sense, the IP ownership is different than if the algos were developed while working for the company.
Regarding #2: Is this even plausible? Is it wise to trust a company to volunteer how profitable your algo is turning out for them??
Regarding #3: Is this a crazy idea if I have zero experience running something like this?