Can this trading system be sold?

A

alf111

I've got a trading system (based in Amibroker) that has been developed that enters and exits daily. Completely liquid. Extremely easy to set it up (10mins a day). Profitable every year, averaging 30% a year. (As low as 10, as high as 80. Highest was over 100% but I took that out to not skew the results)

Trading it live is obviously profitable (almost no slippage even with a mid++ 6 fig account) , but selling to a fund is more profitable obviously.

I don't need to sell it but just piquing my curiosity, to understand the process if there's even funds that's interested in systems like this? And if anyone has experience how's the process like?
 
alf111 said:
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I don't need to sell it but just piquing my curiosity, to understand the process if there's even funds that's interested in systems like this? And if anyone has experience how's the process like?
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Sure dude. Let's ask you two basic questions.

1.) How much money does your "system" require in a cash account at minimum to obtain the stats you claim above?

2.) Can we try it before we buy it, for free?
 
My two questions would be:
1) How scalable is the system? You say it works for a 6 figure account. Will it work for an account 10 or 100 times that size?
2) If the system requires only 10 minutes set up a day why on earth would you want to sell it?
 
DaveV said:
My two questions would be:
1) How scalable is the system? You say it works for a 6 figure account. Will it work for an account 10 or 100 times that size?...
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Or even better, for an account with only 5 figures? Or 4? I mean, that is the audience here.
 
Your system is very good.
You should keep the system to yourself.
Start trading with a small quantity.
As you profit from trading, increase the trading quantity.
This is compounding. Keep on increasing the trading quantity.
Then your account will grow exponentially.


I doubt people will buy it.
As such, you have to pay people to test it for you.
 
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Firms rarely buy systems - they spend their money on talent. A good number of the HK-based firms are fleeing to Singapore so you should have target-rich group of potential buyers.
 
1.) How much money does your "system" require in a cash account at minimum to obtain the stats you claim above?
- Or even better, for an account with only 5 figures? Or 4? I mean, that is the audience here.

- 50k to get the identical backtesting results. Even with a 10k account you could get relatively similar numbers, might deviate slightly as certain trades are missed. (But there are so many that it's negligible, it's not like 20% of the profits come from 5 trades) system is relatively robust, no single 'trade' breaks it, or no single 'day' breaks it.

IF i were to sell it it's obviously a premium to 1 buyer, or max 2. No point selling this to 10,000 buyers.

2.) Can we try it before we buy it, for free?
Why not. Obviously not giving the codes away though.

3) If the system requires only 10 minutes set up a day why on earth would you want to sell it?
- Could sell it for a nice figure for a fund that has $$$, why not. Making 10% on my money is very different for them making 10% on THEIR money. As above, if i were to sell probably only selling to 1-2 buyers at a premium.

4) How scalable is the system? You say it works for a 6 figure account. Will it work for an account 10 or 100 times that size?
TBH no idea. Only can determine that via forward testing. I wouldn't know the slippage. Trying to purchase (example) 1 million shares at a limit order is very very different from 5000 shares. No low volume stocks traded though.

That said for someone with a 100m account trading this Im pretty sure their' risk profile/management is going to be different and will be tweaking the parameters to adjust. Parameters are relatively robust so nothing really breaks it unless you do something drastic.







 
alf111 said:
...Trying to purchase (example) 1 million shares at a limit order is very very different from 5000 shares. No low volume stocks traded though.
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Oh, it is a stock thing. Sorry, lost interest. Good luck!
 
alf111 said:
I've got a trading system (based in Amibroker) that has been developed that enters and exits daily. Completely liquid. Extremely easy to set it up (10mins a day). Profitable every year, averaging 30% a year. (As low as 10, as high as 80. Highest was over 100% but I took that out to not skew the results)

Trading it live is obviously profitable (almost no slippage even with a mid++ 6 fig account) , but selling to a fund is more profitable obviously.

I don't need to sell it but just piquing my curiosity, to understand the process if there's even funds that's interested in systems like this? And if anyone has experience how's the process like?
More...

I know of instititutions that might be interested in your system, but mid 6 figure capacity is way too small.

GAT
 
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