Ask HN: We made a successful algo trader. How to split the equity?

Re:Ask HN: We made a successful algo trader. How to split th... by neximo64 on Tuesday September 29, 2020 @08:34PM (#24634662)

1) Do a calc of hours worked by everyone in the past

2) Split proportionately amongst those hours

3) Apply a wage rate to those hours depending on the job involved

4) Adjust the wage rate so earlier is higher (more risk), later is lower (as the business started working)

Use that as the equity split going forward that you have to still work to vest.

Using a mechanical way to attribute effort everyone can acknowledge is extremely important. The area you'll really have disagreement on is the wage rate to apply & how much premium to apply for an earlier vs late joiner. But those are easier conversations.

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Re:Ask HN: We made a successful algo trader. How to split th... by _pygv on Wednesday September 30, 2020 @05:27AM (#24636931)

Thanks for your input. I agree with this. One thing that's not obvious is how to weigh work in the past vs work in the future (I would weigh that equally) Another thing is how to weigh the amount of risk taken. B "gave up" his studies and a personal project he had, and B and myself (A) both work for a long time with the doubt that we could make the project successful. I think A and B should be rewarded somewhat for this, the question is how much.

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