The Goal
1.) Hedge Fund Investment Capital by August 2017
-- To be able to make the hedge fund lots of money as well as set up my family for the future.
The Process
1.) Create lots of EA's and have 3rd parties monitor the progress as proof for funds
2.) Figure out how to create consistency with my EA's
3.) Manage risk very very well
4.) Get my Series license so for legal purposes
Steps Taken
1.) Created EA 1 so far and am letting it run on demo for 1 month then will take it live.
-- This is to ensure glitches don't blow my account for no reason.
2.) Working on another EA based on a different core strategy.
Things learned so far
1.) Keep the EA very very very EXTREMELY SIMPLE. (This eliminates curve fitting)
2.) WRAP the EA in lots of risk management. (Risk management has nothing to do with your base strategy, this is managing trade size, managing number of lots, how big your stop is vs target, ect.)
--- Example: My EA 1 is a simple strategy with 7 types off risk management parameters around it to ensure that it makes much more than it loses and only trades on the highest probability days.
3.) Ensure you back test your EA across several years with quality data, then forward test it across several years of different quality data and ensure it works consistently on all to avoid curve fitting.
Results
1.) EA 1 - Currently up 14.2%
1.) Hedge Fund Investment Capital by August 2017
-- To be able to make the hedge fund lots of money as well as set up my family for the future.
The Process
1.) Create lots of EA's and have 3rd parties monitor the progress as proof for funds
2.) Figure out how to create consistency with my EA's
3.) Manage risk very very well
4.) Get my Series license so for legal purposes
Steps Taken
1.) Created EA 1 so far and am letting it run on demo for 1 month then will take it live.
-- This is to ensure glitches don't blow my account for no reason.
2.) Working on another EA based on a different core strategy.
Things learned so far
1.) Keep the EA very very very EXTREMELY SIMPLE. (This eliminates curve fitting)
2.) WRAP the EA in lots of risk management. (Risk management has nothing to do with your base strategy, this is managing trade size, managing number of lots, how big your stop is vs target, ect.)
--- Example: My EA 1 is a simple strategy with 7 types off risk management parameters around it to ensure that it makes much more than it loses and only trades on the highest probability days.
3.) Ensure you back test your EA across several years with quality data, then forward test it across several years of different quality data and ensure it works consistently on all to avoid curve fitting.
Results
1.) EA 1 - Currently up 14.2%