Developed a very good algo... Now what?

[Adibi83]

Hi everyone. I'm looking for an advice:

1. I developed a very good algo ( http://www.myfxbook.com/members/adiben83/solidp/2040881 ).
2. It's running on a live account since June 2015, with relatively low leverage, and has a pre-tax 68% return on 15% max draw-down.
3. I have a detailed presentation for potential investors & statements of course. Sent it to few hedge funs, but got no reply.
4. My algo system won't yield 500% per month ......... more likely 50% per years (on a long term average).
5. My account is ~$15,000, so I need funding. I don't know what's the best way to implement the potential of the system.
6. Any tips?

Thanks

 

[Overnight]

Hi everyone. I'm looking for an advice:

1. I developed a very good algo ( http://www.myfxbook.com/members/adiben83/solidp/2040881 ).
2. It's running on a live account since June 2015, with relatively low leverage, and has a pre-tax 68% return on 15% max draw-down.
3. I have a detailed presentation for potential investors & statements of course. Sent it to few hedge funs, but got no reply.
4. My algo system won't yield 500% per month ......... more likely 50% per years (on a long term average).
5. My account is ~$15,000, so I need funding. I don't know what's the best way to implement the potential of the system.
6. Any tips?

Thanks

What were your commissions?

 

[wintergasp]

Hi everyone. I'm looking for an advice:

1. I developed a very good algo ( http://www.myfxbook.com/members/adiben83/solidp/2040881 ).
2. It's running on a live account since June 2015, with relatively low leverage, and has a pre-tax 68% return on 15% max draw-down.
3. I have a detailed presentation for potential investors & statements of course. Sent it to few hedge funs, but got no reply.
4. My algo system won't yield 500% per month ......... more likely 50% per years (on a long term average).
5. My account is ~$15,000, so I need funding. I don't know what's the best way to implement the potential of the system.
6. Any tips?

Thanks

I've looked at your presentation, is there some sort of double up component when you lose?

Eg you buy 2 and then 4 and then 8 but that only happened twice since 2004?

 

[algofy]

You state that you start with no leverage and ratchet up the leverage a little bit as you go. You're numbers look pretty good to me and seems like you have risk under control, what about increasing leverage some, have you tested this?

 

[Adibi83]

What were your commissions?

2.5 pips spread per trade.

 

[Adibi83]

I've looked at your presentation, is there some sort of double up component when you lose?

Eg you buy 2 and then 4 and then 8 but that only happened twice since 2004?

I don't double up every time. I have 5 trading methods in the system, one of them double up twice and than stops; another one increases leverage after several losses (not every time) but again - it stops at some point. Moreover, whenever leverage increases, the stop loss is getting more and more aggressive. I'm quite careful when it comes to risk management.

And about the "buy 2 and then 4 and then 8 but that only happened twice since 2004" - Yes.

 

[SoesWasBetter]

Can't imagine you ever getting a response on a short backtest like this. And the concentration on gains in one 6 month period no less.

Go rub two out.

 

[Adibi83]

You state that you start with no leverage and ratchet up the leverage a little bit as you go. You're numbers look pretty good to me and seems like you have risk under control, what about increasing leverage some, have you tested this?

Well, it's a matter of risk appetite. During back-testing I had 2 periods of ~40% max drawdown (one in 2004 and again in 2010), using the leverage level I use today. It is extreme and unusual, but it can happen again. I'm comfortable with the current leverage (thoug I've increased it a bit since November due to equity growth).
One last think: the system is designed to make profits over time. It was not designed to "go wild" and return 1,000% per year or what some crooks claim they can... I don't believe in magin, I do plain trading. That is why I'm looking for a partner or investor for the long term.

 

[Adibi83]

Can't imagine you ever getting a response on a short backtest like this. And the concentration on gains in one 6 month period no less.

Go rub two out.

Hi, what do you mean "short backtest"? I back-tested the system from 2004 to 2015 - isn't that enough?
And what do you mean by "the concentration on gains in one 6 month period no less"?

Might I add the "Go rub two out" is quite inappropriate. I'm posting real numbers and something I've worked on for many years and that's what you have to say? Truely disgusting

 

[algofy]

Can't imagine you ever getting a response on a short backtest like this. And the concentration on gains in one 6 month period no less.

Go rub two out.

Short backtest? What do you consider a long enough backtest?