Best way to monetize profitable ideas

[CFerret]

Are you saying you would rather sell/pawn your ideas/strategies than trade them yourself? I don't know what your vehicle is but a strategy worth real money should scale far beyond what any other vehicles can offer (except illegal ones of course). The only way I would buy any strategy (track record or not) is in some kind of installment plan based on real money performance. I would want the strategy pay itself off.

Not sure about scaling, usually easier said than done unless you get an edge in say ES during RTH.

My other vehicle is my wholesale business, completely unrelated to trading and also pretty scalable and growing, so far see no limit on it to swallow any money lol.

 

[They]

Monetization? You have three choices; trade them, sell them, lease them.

To choose one of the above you'll need to ask yourself if you want to be a trader or a 'trading dream' merchant to wannabe traders.

Alternatively there is another choice, accepting that your hobby is a big waste of time and money but that you enjoy it.

Dream Merchants apply here:
https://trade.collective2.com/
https://ampfutures.isystems.com/

 

[Robert Morse]

Trading is more a hobby for me. I spend spare time developing strategies and testing ideas. However I'm not much interested in trading them myself (ironically, my other business is a better place to invest my own money).

The question is: what is the best way to optimally monetize on profitable models I periodically find? All purely statistical/mechanical, no snake oil or subjective reading whatsoever.

Would appreciate advice.

Find a partner that does trade and can match your equity, that you know and trust.

 

[tommcginnis]

a strategy worth real money should scale far beyond what any other vehicles can offer

Happily, very wrong. There are a lot of unsung trading algos/protocols which provide a living for anybody with a computer and a hook-up that survive only because they are taking bits of the market that are simply not worth the time of the big boys. These are accounts that don't take a month or two to ease out of positions, or a few weeks, or a few days, but instead can ease out of positions in a few minutes -- or "under an hour." They are happy to make mortgage payments, not headlines.

 

[qlai]

here are a lot of unsung trading algos/protocols which provide a living for anybody with a computer and a hook-up that survive only because they are taking bits of the market that are simply not worth the time of the big boys.

Exactly ... big boys are not interested and they are the ones who can offer you real money for your ideas/strategies. But if you want to offer your strategy for easy monthly payment of $9.99 with 100% money back guarantee, then sure. The only thing is that if it works(big IF), I will simply stop paying and run it on my own. That's why people who offer their strategies, for affordable money, code it into existing platforms and run them on your behalf without reveling their edge.

 

[tommcginnis]

Exactly ... big boys are not interested and they are the ones who can offer you real money for your ideas/strategies. But if you want to offer your strategy for easy monthly payment of $9.99 with 100% money back guarantee, then sure. The only thing is that if it works(big IF), I will simply stop paying and run it on my own. That's why people who offer their strategies, for affordable money, code it into existing platforms and run them on your behalf without reveling their edge.

No. Your contention was that a worthwhile idea must scale -- a requirement disproved daily by individuals and family-funds that simple have no interest in tooting their own horn(s), for as soon as they do, market arbitrage will siphon those profits away.

 

[Robert Morse]

Trading is more a hobby for me. I spend spare time developing strategies and testing ideas. However I'm not much interested in trading them myself (ironically, my other business is a better place to invest my own money).

The question is: what is the best way to optimally monetize on profitable models I periodically find? All purely statistical/mechanical, no snake oil or subjective reading whatsoever.

Would appreciate advice.

Are you really in Siberia?

 

[qlai]

Your contention was that a worthwhile idea must scale

I may not have expressed myself clearly, but my point was that an idea worth paying good money for, must scale. Hedge fund will not buy your idea unless they can put significant money into it. A retail trader may buy your idea but will either not pay enough or will stop paying after a while. Don't forget that fully mechanical strategy must be "properly" automated and monitored daily. So let's say I buy the strategy. I need to code it and run it with MY money paying fixed costs and taking all the risks. So how much should I pay for that!? I am fine splitting profits, but not paying outright anything more than a good faith deposit. Can you tell how you put a price on a strategy?

 

[tommcginnis]

but my point was that an idea worth paying good money for, must scale.

And you are wrong.

An idea that makes a safe dollar makes a safe dollar. One million of such ideas makes one million dollars. But the idea that a hedge that works less than $100,000,000 must only participate in algos that scale to $10s of billions -- is patently ludicrous. Neither the economy, nor the market that trades it, is linear.

For further replies, just re-read the prior posts.

 

[Specterx]

Trading is more a hobby for me. I spend spare time developing strategies and testing ideas. However I'm not much interested in trading them myself (ironically, my other business is a better place to invest my own money).

The question is: what is the best way to optimally monetize on profitable models I periodically find? All purely statistical/mechanical, no snake oil or subjective reading whatsoever.

Would appreciate advice.

The lowest hassle option is probably something like collective2.