<t>It would be helpful if you explained (1) how much data you plan to use; (2) how much computation you plan to do; (3) exactly what you mean by algorithmic trading.I am in a similar situation -- would love to get a PM from you so that we can talk about collaborating.My definition of "beast" is a li...

Does anyone have experience with the S&P Capital IQ product? Is it good, bad, worthwhile?Main web site is https://www.capitaliq.com/ To what other products does it compare to?

Two securities are highly correlated. Is there a way to profit knowing just this fact?

And thanks to zinmaster for giving such an excellent response.

<r><URL url="http://faculty.fuqua.duke.edu/~charvey/Teaching/BA453_2004/Muller_Proprietary_trading.pdfQuoteOriginally"><LINK_TEXT text="http://faculty.fuqua.duke.edu/~charvey/ ... Originally">http://faculty.fuqua.duke.edu/~charvey/Teaching/BA453_2004/Muller_Proprietary_trading.pdfQuoteOriginally</LI...

<t>What are the best equity transaction cost models? The most common one I see in the literature is simply a percentage (number of basis points) of the $ amount of the transaction. They are not functions of size, volume, volatility, time of day, etc.At minimum I would like to have something that is ...

It's a percentage of your P&L. QuoteOriginally posted by: orangeman44is that 10% of 20% that you keep or 10% of the whole pie?

That's not what I'm thinking of. I'm thinking of proprietary trading desks at Wall Street investment banks.QuoteOriginally posted by: farmerThe number I most often hear is 50%. But I'm thinking of opening a commission house in Nevada

What percentage of their P&L do top proprietary traders get? I define a top trader as someone who has generated $20M or more of P&L for 3+ years with a Sharpe ratio > 2. How about more junior traders?

<t>That is exactly what I'm looking for -- it compounds tax free until it gets distributed. What I want to avoid is being taxed both at the corporate level and at the individual level.QuoteOriginally posted by: crowlogic The money still has to be taxed when it is transferred back to the prop traders...

<t>If my prop P&L is $10M and corporate taxes are 35% then I would save $3.5 million per year. Is the overhead more than that?QuoteOriginally posted by: MattFHedge funds are registered in tax havens such as Bermuda. You could, in theory, set up your own proprietary trading vehicle the same way b...

<t>The latest issue of Journal of Portfolio Management has a fascinating paper by Ziemba called "The Symmetric Downside-Risk Sharpe Ratio." The technical result is interesting but also interesting is that he shows the performance (in both numbers and graphs) of Soros, Buffet, Robertson, and Keynes(!...

Athletico..thanks but that is geared towards an individual trader, not a prop desk.I'm really looking for how hedge funds, etc. who trade for their own account shelter their profits from taxes.

<t>Many oil companies have negative tax rates over multiple years (they get money back instead of paying) because there is a large set of standard ways for oil companies to shelter income. Do proprietary trading desks shelter their profits? If so, what are the standard techniques for doing so?QuoteO...

<t>A lot of people know what a proprietary trading account is doing. At least they do for my proprietary trading.I'm serious about this question. If a bank has to pay corporate taxes on the profits in proprietary trading the returns get destroyed. It would then be reasonable to simply distribute all...