Seeking Guidance: Profitable systematicTrading system and Investment Opportunities

Trading
1

I’ve developed a profitable systematic trading strategy with a remarkable CAGR of 95% in intraday equity trading, utilizing multiple strategies. Over the last 5 years of forward testing, the maximum drawdown stands at 15%, while the lowest monthly return was -6%, the average monthly return at 6.7%, and the highest monthly return reached 29%.

Now, I’m exploring avenues to secure investment for this trading setup or potentially manage others’ accounts systematically through API trading. I’m eager to understand how to raise capital, manage, or trade intraday in equity in external accounts while ensuring adherence to all pertinent legal considerations.

Seeking advice on connecting with potential investors or establishing structured account management, any insights or guidance on this matter would be immensely appreciated.

2

To begin, it is imperative that you formally enroll as both a broker and a financial advisor.

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Intraday stocks isn’t very scalable.

With such high returns, you don’t need to raise capital - best to compound your own until you cannot scale ( probably few Crs with multiple systems) and then diversify to other instruments. You did trade this for last 5 years, so no reason why you shouldn’t already have a good capital base now.

Higher timeframes, Nifty FnO would be much more scalable as slippage begins to matter less.

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Thank you.

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Thank you

6

Appreciate your response. Could you provide some information on how to become a sub broker and a financial advisor to mange clients capital on a profit share basis.

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You must successfully complete both the SEBI Investment Adviser Level 1 and Level 2 examinations.
Level 1
Level 2
There after, you will have to register yourself with SEBI. Qualification required for registration - A minimum educational qualification of a graduate degree in finance, economics, or business administration or a professional qualification such as a CA, CFA, or MBA.
For becoming a sub-broker, you can follow these steps -

  1. Choose a sub-broker franchise model
  2. Review the eligibility criteria
  3. Gather the required documents
  4. Register online with the Securities and Exchange Board of India (SEBI)
  5. Pay the registration fee and initial deposit
  6. Register with your local stock exchange
  7. Apply to become a sub-broker at a brokerage company
  8. Express your interest in becoming a sub-broker on the stockbroker’s website
  9. Submit the form
  10. Pay the SEBI registration fees