Having Others Supervise Your System

Quote from bubba7:

Corso,

If you have a system that is working do a projectionon when it's return is enough to replace your income and still be growing at your current rate.

I think you will find that this is a relatively short time.

In the meantime find out why you can't trust it and trust yorself.

What is your current monthly ROI?

How long is each hold cycle for profits?

What is your profit per cycle?

How ferequently do you upgrade your trading algorithm?

What incremental increase in profits do you get?

Obviously you have been trading for less than a year or something, since you do not have a time horizon yet for quitting your job.
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The question was just hypothetical. I have a few systems that I'd like to take live once I gather enough capital, so I'm contemplating the options.

As far as quiting my job, that's something I'd never be comfortable doing. It's just too risky to have my entire income depend on my trading. And I can imagine the negative effects it would have on trading. Oh, and if you have someone else execute your system, that takes care of the discipline issue.

Besides, paying more comissions to a broker for monitering the system seems like a good trade off for keeping my job income.

Thanks for your replies all.
 
Corso,
Actually , if you have a good system ( backtested with yearly ROI with 100% or better and 70/30 inn/loss ratio) I know somebody who will fund account and share profits . Let me know if you are interested .
Walter
 
its possible to get someone to check your system out first, even before you go with it live. its a good idea since most first-time "testers" can weed out the small gloitches that even you would not see (to give a difference perspective is all). just be sure that the person that you're letting see the code doesnt just use it for him/herself.

Pete
 
Quote from Walther:

Corso,
Actually , if you have a good system ( backtested with yearly ROI with 100% or better and 70/30 inn/loss ratio) I know somebody who will fund account and share profits . Let me know if you are interested .
Walter
More...

Walther,

how do you determine the ROI for futures? Do you mean per margin? Say, the margin for 2 ES contracts is $5,000 and the system makes $15,000 per year. Do you count it as 300%?

Thanks,
Wally
 
Quote from wally_:



Walther,

how do you determine the ROI for futures? Do you mean per margin? Say, the margin for 2 ES contracts is $5,000 and the system makes $15,000 per year. Do you count it as 300%?

Thanks,
Wally
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Wally,
No 300% would be ROMargin, investment in account has to be bigger then margin to allow for a drawdown period. For ES it would be at least 5K per contract if maximum drawdown of system in consideration is < 30% .
Thanks,
Walter
 
Quote from Walther:



Wally,
No 300% would be ROMargin, investment in account has to be bigger then margin to allow for a drawdown period. For ES it would be at least 5K per contract if maximum drawdown of system in consideration is < 30% .
Thanks,
Walter
More...

Yes, that's what I meant too, except that was too sloppy to mention the drawdown. Glad you corrected me.
 
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