basic economics of an algorithmic trading startup
or: how to quit your job to riches!
Recently I had a thought-provoking email exchange with a reader of this blog. It was with a fellow who wanted to startup an algorithmic trading business and was seeking my advice. Its arrival was timely for me and I hope the advice I provided the aspiring entrepreneur was helpful.
The conversation forced me to reconsider familiar terrain from a different perspective, so I share it along with some further thoughts in the hope that it might act as something of a counter-weight to articles and blogs entreating you to “learn algo-trading!” (as though it were a fun! weekend hobby) or “make a million % trading the xyz” and more nefarious advertisements selling the trading equivalents of male-enhancement pills & potions (“I turned a used bus ticket and some pocket change into $7M in 2 months trading the e-mini!”).
I’ve changed the writer’s name and all identifying characteristics for obvious reasons. He wrote: Read more…
