I am trying to find a group or firm to partner with on an arbitrage platform I have developed. I am not looking for an employee or employment, I am looking for an experienced and adequately capitalized partner that has the resources to extract superior returns from an arbitrage platform... for example:1. a hedge fund or proprietary trading group that has or is developing an arbitrage division.2. an institution looking to optimize pricing on large allocations in stock indexes or bonds - think: 1-2 bps of price advantage in the equities (which adds up to real money and performance over a year if you trade $10+ million in value daily).Here's what I have to offer: 1. A working, ideally situated high frequency arbitrage trading server with remote trader interfaces and strategy research tools. This is a production server that I have used for the last 2 years. Mostly it is custom software that I built in C++ and assembly.2. A series of proven profitable high frequency arbitrage strategies in major markets. Further details on the strategies are at the bottom of this post.3. An additional series of statistical arbitrage strategies in equity futures and equities in various stages of development, from "somewhat" proven to some in conceptual stages. These strategies can also be used to optimize large transactions in various stock indexes. Again, more details at the bottom of the post.4. A strong desire to monetize the full value of a profitable arbitrage system I have developed and a strong desire to not spend my time supervising an arbitrage operation.5. I will be happy to provide a limited amount of ongoing support and maintenance (translation: I don't want a full time job). For the right situation, I will consider a more involved relationship.6. Since I developed these strategies myself, I have full ownership of all intellectual property. I have no encumberances or non-compete contracts that restrict my activity. There is only one minor restriction on the trading that I will impose because of a verbal commitment I made to someone.The ideal partner will:1. Have a background which under scrutiny will be consistent with the highest standards of professional integrity.2. Be adequately capitalized financially, technically, and in terms of human resources. They must have some level of in-house programming and quantitative expertise.3. Have the personnel that can implement the trading and risk management that is required to optimize returns from an arbitrage system. This is extremely important: the organization must have sufficient scale and knowledge to understand how (and if) they can realize an appropriate rate of return from an arbitrage system. I will turn away potentials that I feel will not be able to realize superior returns on capital from the arbitrage system.4. Will have, or be willing to lease, exchange memberships.5. Will be willing to sign liability waivers and indemnification agreements. 6. Willing to make an appropriate cash commitment, which could be held in escrow based on certain conditions.7. Happy to share a noticable percentage of the net trading profits on a weekly or bi-weekly basis, at least initially. I won't make any more deals with the "check is in the mail" types.8. Some of the equity arbitrage strategies require a Bloomberg or other subscription service that provides daily updates to stock index changes. They also require the personnel that can monitor those changes daily.Further details on the strategies (strategies that can consistently handle the biggest positions are near the bottom of the list). (a) Some high-frequency strategies I currently run are relatively pure arbitrage. With proper management, they are able to generate $80-150k per year in net profits. Adding exchange memberships will increase these totals by roughly $30-40k. Adding more aggressive position sizing would add perhaps another $20-80k. "More aggressive position sizing" means increasing trade size from $1-6 million of notional value up to as much as $60 million of notional value.(b) I have additional fully developed high-frequency strategies that are relatively pure arbitrage that I cannot run due to lack of manpower and exchange memberships. I estimate these strategies are able to generate an additional $30-60k per year, but I cannot be absolutely sure as I have not run them nearly as often as the strategies in (a) above.(c) I have templates for high-frequency strategies for which I lack critical pieces of information, for example: EBS spot currency feed as an input into a currency futures arbitrage model.(d) I have templates for high-frequency ETF arbitrage strategies which I cannot run due to lack of manpower and capital. These strategies can be used to optimize trading of large blocks of stock indexes. Typical price advantages realized are 0-2 bps.The (a) and (b) strategies are comparatively the simplest strategies I have, but also require the greatest leverage and highest turnover. They offer little hope for scale, and so I realize the dollar figures above are probably of little interest to a serious partner. Mostly the (a) and (b) strategies prove the platform and concept. The (c) and (d) strategies provide some upside potential and demonstrate the platform's extensibility to other opportunities.(e) I also have value-driven statistical arbitrage strategies in equity futures that are in late stage development. These have some scale, but only moderate frequency. When I say "value-driven", I mean that the primary basis for the strategy is arbitrage pricing. When I say "scale", I mean feasible position sizes that translate to roughly $10 million of notional value. Typically profit potentials per trade range from 0-30 bps with risk of loss controlled to about 0-15 bps.(f) I have some strategies that are "event-driven" statistical arbitrage. They are much lower frequency strategies but generally offer higher probabilities of success. Scale varies greatly with the type of event - for example an event specific to Yahoo! or General Motors will have less scale than one related to an earnings beat by Cisco which might affect all networking and chip stocks. In the past year, I have seen such opportunities that would easily absorb $100 million on the way in and the way out (that's at least $99 million more than I'm working with). Profit potentials per trade I have seen range from 25-150+ bps. Positions are typically held from a few hours to not more than a few days. Risk of loss would have to be controlled to 0-25 bps.(g) Many of the strategies described above are extensible to international counterparts for a firm that has global presence.(h) Some of the most interesting stuff I have is based on qualitative interpretation of quantitative value indicators extracted from the arbitrage models. Think of it as extracting imperfect information on actions of market participants based on arbitrage pricing relationships. I have not figured out how to quantify it into a trading system, but I think it would be of interest to a proprietary trading outfit.To initiate a discussion, please e-mail your contact information to me at info (a t) activecallcenter (d o t) com.