Ive been trading as a hobby (swing trading) and analyzing the markets for a few years now. My profession is business intelligence engineering (Online Retail), where I do a lot of work on analyzing customer behaviors and pattern recognition.
This year I decided to invest in some time to analyze futures market and how market orders hit the market to see if I can capture some patters to identify when big players quietly step in and eventually move the market. After 6 months of hard work (pretty much my whole weekends), I built an algorithm that identifies the moments when big players are active and start pushing the market. Of course they do sometimes fail as well but with the right money management and risk/reward ratio, the system works and seems quite profitable (manual back testing with strict rules).
On my back tests I used 1:3 risk reward ratio, with an average 16 tick SL and 45 tick TP. The algorithm generates 10 to 12 signals per day and 2 to 6 of these turn into trades when the strategy rules are followed. So far so good I could get it run profitably on NQ. When the strategy rules are strictly followed (Successful Break Out, Break Even etc..) it generates 400 ticks ($2,000) profit per week in NQ (trading just 1 lot). Of course Im well aware of the effects of; execution in real market, getting your order filled on a breakout, and slippage which can definitely effect the results negatively but I still believe it will be profitable.
The reason Im writing these down; at the moment I have no plans to quit my day job since I work for an amazing company, get paid extremely well and not sure full time day trading is for me. I thought about partnering up with someone, open a TopStepTrader account, that person can trade with my system and we can share the profits but not sure if that would be the best approach.
I know there are a lot of experienced traders in the Elite Circle here and wanted to get your opinions, what would you do in this case?