A timely revival of a thread. When I go back and read the posts, most guys are skeptical about there being a repeatable "edge", and a firm being able to replicate a method of trading.
About 2 years ago I found something. A structural thing. Almost an arb. I rattled off over 100 trades with no losses, and maybe 8 scratches. In one afternoon. I still have the trading sheets. You could see me starting with one lots as I was unsure, then working to 3, 5, 10, higher.
Fast forward 2 weeks from that day. My Introducing Broker (IB), who sees everything traded - he might be on the hook for some reason if a trader over-trades - calls me up as I'm doing this, and lets me know about an exchange rule that I might violate if I put in a certain type of order. Fine. I didn't need to step over any lines, and hadn't - but I knew he was lookin'. The capacity for these trades then mysteriously started to fill up. I continued, but at a much slower pace. Fast forward about 2 years from that first day (only a couple of months ago). An old friend of mine goes in to this IB to open an account. The IB is teaching my method to people as soon as they walk in the door. Showed it to my friend.
Your broker stealing your repeatable idea will be a *rule*, rather than an exception. What exactly prohibits him from making this money? Nothing. Don't believe me? Get a standard form non-disclosure agreement (NDA) off the internet and ask your broker to sign. You will then hear the most beautiful, gentle language describing why he can't sign - and how "that doesn't happen here".
Calling all lawyers. In the abscence of an NDA, does that privacy statement that all financial institutions must now sign, prohibit sharing of all personal financial information, including activity in your account? That would cover us all.
About 2 years ago I found something. A structural thing. Almost an arb. I rattled off over 100 trades with no losses, and maybe 8 scratches. In one afternoon. I still have the trading sheets. You could see me starting with one lots as I was unsure, then working to 3, 5, 10, higher.
Fast forward 2 weeks from that day. My Introducing Broker (IB), who sees everything traded - he might be on the hook for some reason if a trader over-trades - calls me up as I'm doing this, and lets me know about an exchange rule that I might violate if I put in a certain type of order. Fine. I didn't need to step over any lines, and hadn't - but I knew he was lookin'. The capacity for these trades then mysteriously started to fill up. I continued, but at a much slower pace. Fast forward about 2 years from that first day (only a couple of months ago). An old friend of mine goes in to this IB to open an account. The IB is teaching my method to people as soon as they walk in the door. Showed it to my friend.
Your broker stealing your repeatable idea will be a *rule*, rather than an exception. What exactly prohibits him from making this money? Nothing. Don't believe me? Get a standard form non-disclosure agreement (NDA) off the internet and ask your broker to sign. You will then hear the most beautiful, gentle language describing why he can't sign - and how "that doesn't happen here".
Calling all lawyers. In the abscence of an NDA, does that privacy statement that all financial institutions must now sign, prohibit sharing of all personal financial information, including activity in your account? That would cover us all.
) open 2 separate accounts in the same "IB". During the trading hours I open a trade in my account and he closes it in his account when my strategy says "exit"(by then we both holding an open trade, 1 long and 1 short. say long=10906, short=10952), I flat all positions in 2 accounts by market close orders. Can the "IB" steal my strategy? In real trading, only me pulling the trigger.