Black Box

hey 'one' thanks for the post, 20% is a decent cut from what my research shows so far. I feel the same way about trading ideas. No matter how great a trading idea is, it will not make money unless it's implemented and constantly maintained. I have several trading strategies I use and I think finding a firm to maximize the potential of one trading idea for a cut of profits is a good risk/reward.

I have learned a bunch since I originally started this thread. After I've done more homework and come to some conclusions about the different black box firms I will post my experiences.

One last note; I'm not trying to market a trading 'system' to the public. Also, I'm not trying to buy a trading idea from anyone.

I have a proven trading edge which I would like a black box firm to program and trade for me. Thanks for all the posts!

Scalp
 
Quote from scalp100:

...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
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We talk with people regularly that need assistance coding or testing systems but are hesitant to reveal the sensitive parameters of their strategies. Our clients typically seek protection in NDAs, references, and selective disclosure--the latter being the most common.

People generally don't reveal their entire strategy. Rather, they have us program what they can't, and they do the rest. Or, we program the basic strategy with blank parameters and they fill in the parameters. Sometimes a person will even give us instructions to code three totally different systems. Once we complete them, they'll then take components from each system and combine them into one on their own to mask how the pieces fit together.
 
Quote from RobertMcLister:

We talk with people regularly that need assistance coding or testing systems but are hesitant to reveal the sensitive parameters of their strategies. Our clients typically seek protection in NDAs, references, and selective disclosure--the latter being the most common.

People generally don't reveal their entire strategy. Rather, they have us program what they can't, and they do the rest. Or, we program the basic strategy with blank parameters and they fill in the parameters. Sometimes a person will even give us instructions to code three totally different systems. Once we complete them, they'll then take components from each system and combine them into one on their own to mask how the pieces fit together.
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Do you use "code names" also?

http://www.raisingarizona.com/

:D
 
Quote from 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.
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20% ???

I would have done it for half that if the numbers in play were large.

nitro
 
Hi All,

What a bunch of crybabies in this thread! Nagging about supposed edges that they couldn't trade because of insufficient backing and missing black boxes.

:D :D :D :D :D :D

nononsense
 
YES CONTACT LASTATLANTIS at LASTATLANTIS.com or IM METOXX.

But be warned...dont come to these guys with some bullshit Blackbox system. You need to be 100% sure and not some clown who post on ET for kicks.
 
Quote from ElectricSavant:

Get a management fee...

Michael B.
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ES,

People that want to invest money, AFAIK, always want to do it in such a way so that there is no discretion involved. The reason is they want repeatability...I don't blame them.

Getting into that game brings a whole another set of skills. I have friends that went that route after being programmers at a hedge fund. They both told me the same thing. If you are not good at handholding "Investors," don't get into this business.

I have come to the conclusion that if you have a good system, you should trade it for your own account. The other possibilty is to hand it over to someone that can throw a large amount of money at it, but that has it's downside too.

The simplicity of it all is always striking, isn't it?


nitro
 
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