That's the idea. You make money by selling people the same thing again and again and again and again and again and again and again and again. What's a better product than fake and sub-standard products to achieve that? There is a reason why China is so rich so fast.
Does / did anyone buy trading strategies?
- Thread starter Aquarians
- Start date
That's the idea. You make money by selling people the same thing again and again and again and again and again and again and again and again. What's a better product than fake and sub-standard products to achieve that? There is a reason why China is so rich so fast.
I find William Eckhardt's answer from the Market Wizards' to be fairly accurate. When asked what he thinks about people selling systems his answers was something like - I tried about 50 and none of them had any value. Then he added - well, one had a component which I was able to use for some other strategies.
This is pretty much all there is to the subject. The best you can hope for -
- After seeing enough of them you will become better at spotting what doesn't work quicker
- You will start thinking in a more systematic and statistical way
- You might find a component of a strategy that you didn't think of before that might be useful for your future strategy
https://alvarezquanttrading.com/blog/
http://blueowlpress.com/books/mean-reversion-trading-systems/
PS. I occasionally post about my automated stocks trading here. The thread has an example of a mean-reversion strategy with all rues.
Val
There's a(nother) strategy that I'm currently testing and gives good results in backtests.
A problem with backtests is that you're wondering: is the data real or just a sampling error? So I implemented it on live data.. so far it holds to some degree.
In backtests I scan over 1000 stocks, in live data I scanned about 100. Will probably need to scale up and scan more. Got a few trigger conditions, which is encouraging, but I would have hoped for more of an edge. I set up a minimum edge (as from backtests) and got a few hits, but if I check the logs, some time later I would have got a bigger edge. So there's always the balance between setting too much margin and never getting a trigger, or too low and getting losing trades.
Anywayza, it looks good enough so far. If it holds allright, I will consider selling it to the professional segment. If not so great, this would be a candidate for selling to retail.
And here you can see the limitations of selling strategies to retail. There is real edge there but... either too small for the big money to be interested in it, or it's just too risky.
But for the retail segment it might not be such a bad idea to purchase a trading strategy as long as it works.
Question is how to price such a strategy? And again, if you sell it, it can quickly become history.
A problem with backtests is that you're wondering: is the data real or just a sampling error? So I implemented it on live data.. so far it holds to some degree.
In backtests I scan over 1000 stocks, in live data I scanned about 100. Will probably need to scale up and scan more. Got a few trigger conditions, which is encouraging, but I would have hoped for more of an edge. I set up a minimum edge (as from backtests) and got a few hits, but if I check the logs, some time later I would have got a bigger edge. So there's always the balance between setting too much margin and never getting a trigger, or too low and getting losing trades.
Anywayza, it looks good enough so far. If it holds allright, I will consider selling it to the professional segment. If not so great, this would be a candidate for selling to retail.
And here you can see the limitations of selling strategies to retail. There is real edge there but... either too small for the big money to be interested in it, or it's just too risky.
But for the retail segment it might not be such a bad idea to purchase a trading strategy as long as it works.
Question is how to price such a strategy? And again, if you sell it, it can quickly become history.
I can't begin to tell you in this small thread how much I've spent to books, training, inducators, strategies, mentors, and the like.
While books and concepts are always good to have in the back of your mind training companies/mentors are harder.
I have found talking with other traders and discussing concepts and ideas helps me. Traders helping traders doesn't cost either!
Platforms just like this is a strong asset.
While books and concepts are always good to have in the back of your mind training companies/mentors are harder.
I have found talking with other traders and discussing concepts and ideas helps me. Traders helping traders doesn't cost either!
Platforms just like this is a strong asset.
Same as business, how quickly can it pay for itself? Buying implies paying in full upfront , but I would prefer leasing. I am leasing one right now and it paid for itself (cost of subscription + potential losses for the year) in first couple of months. I don’t trust backtests (at least done by others), so I want to understand where the edge is coming from.