Black Box

[gms]

If what you want to do is sell a system to the public, then running small ads in trade magazines, online sales, the classifieds in back of the Star and the infomercials or spot commercials I previously mentioned are the thing to do. You'd want to patent the system, which actually means having an ownership not on the indicators (unless they're proprietary), but on how the whole method you created integrates together and works. Of course, patents don't mean squat if someone takes your method and sells it and you don't have the money to see a lawsuit or several lawsuits succesfully through to completion. Especially so if the competition comes from overseas.

Showing your method to prospective investors/backers doesn't mean revealing the method, although it could need that. But an confidentiality agreement would be in order before proceeding.

Sometimes, confidentiality agreements can seem to be breached when the other party comes to market with a similar product, but it may turn out they had something close to mind as your method all along. You'd have to prove they didn't and that what they came out with was truly yours.

If you have a system that you'd rather trade but don't have the capital, trade it for a good term and with the results, see if you can get a small circle of friends to finance the kitty for trading, set up as an investment club, where you all agree to adhere to the method's signals.

 

[scalp100]

GMS- thanks for the info, but I'm NOT looking to sell a trading system to the public. I'm looking for a company that specializes in black box trading development. I think a signed non disclosure and some references would help develop trust. The reason I'm looking for outside help is because I cannot program, I'm a trader.

scalp

 

[caplan8293]

Quote from scalp100:

GMS- thanks for the info, but I'm NOT looking to sell a trading system to the public. I'm looking for a company that specializes in black box trading development. I think a signed non disclosure and some references would help develop trust. The reason I'm looking for outside help is because I cannot program, I'm a trader.

scalp

Definitely do a non-disclosure agreement (NDA) and if you are serious, you might even want to talk to a patent lawyer.

If your ideas are not too complex, you could probably whip something up in TradeStation or WealthLab. If they are complex, you can even contact a consulting firm.

 

[nkhoi]

Quote from scalp100:

GMS- thanks for the info, but I'm NOT looking to sell a trading system to the public. I'm looking for a company that specializes in black box trading development. I think a signed non disclosure and some references would help develop trust. The reason I'm looking for outside help is because I cannot program, I'm a trader.

scalp

break your system into separated pieces and have diff programmer work on it. Baring that make it into system that need paramenter input, that way you can enter the system values yourself.

 

[DK_]

Quote from caplan8293:

Definitely do a non-disclosure agreement (NDA) and if you are serious, you might even want to talk to a patent lawyer.

I have personal experience with intellectual property. In terms of program trading, strategies, indicators and algorithms remember: PATENTS ARE PUBLIC (all available at www.uspto.gov)

Anything worth implementing should be kept a trade-secret. Think coke formula not helicopter.

 

[KiasuTrader]

Scalp-I don't think anybody else understands what exactly it is you're looking for. I do because I've been looking to do the same thing myself.

I've come across a few companies that do this. Two are
Attain Capital www.attaincapital.com
and trade sigal executions

http://www.tsesinc.com/about.html
The first one auto trades systems either ones you can purchase or one's you have designed yourself.

The second one trades 3rd party signals.
If you choose to signup please let me know how it goes as I haven't done it yet.

Cheers,

Kiasu

 

[ElectricSavant]

Contact Strategyrunner, they will write it in C++ for you and offer it on their trading platform.....you collect the monthly lease fees...

Michael B.

http://www.strategyrunner.com

Quote from scalp100:

Does anyone know a firm out there that will take a proven trading idea automate it(black box it), capitalize it, trade it, and then give you a cut of the profits for providing the idea? If so what kind of fee's and split should a person expect?

thanks,

Scalp

 

[StrategyRunner]

We are interested in any futures startegy developed by professional and/or with proven track-record.

We work closely with traders and research groups to automate their system.

The process is :
1) we sign a NDA to protect your intellectual property,
2) we evaluate the marketing potential of your strategy (whether it's suitable for retail clients/instituational clients) and costs,
3) we translate/develop your strategy,
4) we expose your strategy to our brokers (http://www.strun.com/Content/Partners.htm) market your strategy (http://www.strun.com/Content/TradingSystemProviders.htm).

Please send us e-mail to info@strategyrunner.com,

Regards,

Anna

 

[ElectricSavant]

Your welcome strategyrunner?

Michael B.

Quote from StrategyRunner:

We are interested in any futures startegy developed by professional and/or with proven track-record.

We work closely with traders and research groups to automate their system.

The process is :
1) we sign a NDA to protect your intellectual property,
2) we evaluate the marketing potential of your strategy (whether it's suitable for retail clients/instituational clients) and costs,
3) we translate/develop your strategy,
4) we expose your strategy to our brokers (http://www.strun.com/Content/Partners.htm) market your strategy (http://www.strun.com/Content/TradingSystemProviders.htm).

Please send us e-mail to info@strategyrunner.com,

Regards,

Anna

 

[One]

Regarding percentage participation in profits:

Years ago I shopped an arbitrage idea with an institutional desk, who, after signing a non-disclosure agreement drawn up by my lawyer and reviewing records of positions I had already traded, offered me a 20% cut. Since the trade was genuinely riskless, I wanted more and balked. This does give you an indication, however, of what desks may charge to trade an idea with their capital, more or less depending on the risk/reward profile of the idea. If you are able, it seems best to trade the idea yourself, but if not, as in my case where the trade demanded a large backer, a smaller cut is better than none. The amount I have made on the idea in the intervening years: $0.