Quote from Rearden Metal:
Asking for a 50% cut is very unrealistic, since the trader puts up all the money and takes all the risk. Seasoned hedge fund managers with lengthy proven track records only take a 2 and 20 cut (and their investors don't have to manually enter every single trade for themselves). Do you really think anyone sane would pay you more than double that amount?
10% would be a more reasonable cut, and you'd be very lucky to get that, since your system is 100% unproven and you haven't provided any way for the trader to check your credibility. They'd all assume you're probably curve-fitting a system that just works on paper- without even understanding what "curve-fitting" means... which is almost always the case in situations like yours.
Quote from CommunistMonkey:
You seem pretty genuine unlike most of the other system sellers around here, so I won't call you an outright fraud right off the bat.
Why don't you post a week's worth of trades on elite trader so we can see a forward test of the strategy?
In order to have any shot at selling a system, you need to indicate what the training set was, how the algorithm fared against the held out data, and a number of different metrics for both sets of data. (If you've got a system you designed against the first 3 weeks and May and it did well in the 4th week you've got nothing regardless of how good the numbers are.)
If you can do this and you haven't shot a major hole in your system it's worth far more than 25k. If you can't it's worth 0.
If you still decide to try and sell the system (even if it works) everyone will assume you curve fit because no one sells a working system.
The problem ultimately boils down to the fact that the system designer can't prove to anyone that the system is worth anything without essentially giving it away. There are a handful of dopes who will buy a system without doing their due diligence, but there's not nearly as much money in that racket is there is in running a functional trading system.
Quote from occasional_yes:
I have tested this on futures. Too risky for me.
Quote from occasional_yes:
I can post a week's worth of trades but am I not violating any laws by publicly speculating? If it is not, I am happy to post picks.
Quote from asap:
actually is the opposite. futures are more liquid and less costly to trade. that's what you should be comparing. it appears that you refer to riskiness as being the amount of leverage and that's not risk but rather setting how much leverage is used.
Quote from timetotrade:
To the OP---
You think you got a good system? For about $90/6 months, you can open an account with Collective2 at www.collective2.com. You post your trades and collective2 tracks your results. You do well, then you can charge a fee for subscribers to get your trades. No one in their right mind would trade a system that has no real-time track record. Collective2 will give you that track record. If the record is good, you get subscribers. Simple as that.
BTW, I have no affiliation with Collective2.