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Economist on "What % of profits is typical payout for prop/HFT traders?"

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I made my firm $20k a day net of exchange/desk fees ~= $5 million a year--running a high frequency arbitrage model in liquid futures products (no significant capital requirements, stupidly high sharpe) and got $500k bonus. Is that reasonable, low or high? I've heard some shops will pay 20% or even more but might just be recruiters blowing smoke up my ass.

Company I'm at provides the infrastructure and exchange connections but I wrote all the alpha generation/execution logic and manage the portfolio.

I could also go out and run it on my own if I had 1-2 million in capital but would have to spend a year+ developing infrastructure code and would have a worse fee structure (firm I'm at now is a clearing member of most major futures exchanges). Would net more but is it worth the risk?


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