Looking for automated Trading System / have clients / need system

Quote from DT-waw:[/B]
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not really sure what part of my OP looked like a scam.

i'd be we willing to take the cost to have the performance of system audited (which is necessary anyhow), can be traded on your accounts if setup is locked up.

and as far as compensation it is pretty obvious that % of the wining of the clients account will go to the owner of the algorithm and me.


your comments are completely improper. if you have anything relevant to add, please do so, otherwise please move on.
 
AFAIK #1 would be pooling investor funds which would be a pool/hedge fund setup and would require much more legal concerns. #2 set up a FA account where your the advisor. Send email to new or existing ib clients inviting them to patcipate in your signals/program...where ..they can see there accounts trading rt and you as FA cannot touch there funds. Then setup "allocation profile" in this case on a % per sub account. simplistic scenerio, Algo says buy 100 shares, you have 10 equal sized sub accounts= algo buys 1000 shares "allocation profile" = 10% per account, each client sees 100 shares hit there account.
 
Quote from RockMachine:

AFAIK #1 would be pooling investor funds which would be a pool/hedge fund setup and would require much more legal concerns. #2 set up a FA account where your the adviso
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ty, 2 looks like an elegant an simple solution.

just i understood you correctly, those (lets call them) slave accounts will take the trades automatically then, or?

it would be even very elegant, as the client could chose his leverage level on its own.



i even prefer this setup as it would avoid setting up a complicated separated fund. it is a bit more complicated in regards to compensation for our services, but this could be minimized by the need to escrow x% as advance. (after the first month, so now i look like a spam it seems).
 
Yes each client would see 100 share position in tws....however they would not see stops and targets if I remember correctly...slaves would get there allocation off parent stop and or target.

You can also setup monthly/ quarterly performance and AUM payments to the FA.

As far as notional funding to utilize leverage, you would need to ask the FA what's acccetable. If your trading forex, notional funding makes sense unless FA can also utilize excess equity intra day.
 
Quote from themickey:

traderbiker, what is your background & experience in this type venture.
Do you come with any type pedigree?
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non experience whatsoever in this kind of business.

that said, i have built 2 smaller IT businesses which i sold (currently working on the 3rd) and hold executive positions in sales and marketing.

i think my missing trading knowledge should have been pretty obvious by now.

my knowledge doesn't lie in the technical background, i am a sales and marketing guy. i know there is a market for this product, i have been a member of this group and know how they tick and how to tailor a product to their needs.

now it is just a matter of creating the product. (and words like market/demand/product get much easier over my lips than R-R)
 
extension:

the whole business plan is not an "under the table" offer to some people to mange their accounts.

this will be company setup in a proper way (most likely offshore tough), with all investments taken in advance by me which are needed to do this.
 
Not having a technical background within trading I don't see as a problem other than having the know how to marry 3rd party algo's to your client accounts.
The primary marketing background experience is not an issue in my opinion, probably a bonus as I would be interested in a concept to be able to market my algo yet retaining full ownership. Actually had been thinking this same thing recently and was going to post a query on ET, but you beat me to it.
What country will you operate from?
 
IB can handle the trading and accounting with their Financial Advisor (FA) structure. As you probably know, you can also manage multiple accounts on one computer and run multiple (up to 8) algos for each account. You can always add more computers as needed. If your algo needs little attention from an operator, you could run a separate instance for each account rather than trying to control multiple accounts from one instance. That makes scaling up very easy.

It's my understanding the OP wants the algo owner to do the actual trading. The OP will do the marketing and customer interface. If you're running the software, you will need to be registered even if the business is organized offshore, since the clients are onshore.


Quote from themickey:
Not having a technical background within trading I don't see as a problem other than having the know how to marry 3rd party algo's to your client accounts.
The primary marketing background experience is not an issue in my opinion, probably a bonus as I would be interested in a concept to be able to market my algo yet retaining full ownership. Actually had been thinking this same thing recently and was going to post a query on ET, but you beat me to it.
What country will you operate from?
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i cant say yet.

first ideas obv go into the direction of an offshore company somewhere in the carribean (where i currently reside, european citizen).

the company itself doesn't hold any IP just an licensing agreement with the algo-provider.

also, having the company overseas wouldn't prohibit using "brand names" for certification purposes.

how to setup the master trading account, money transfers and all those details are TBD at a later point.

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i also need to figure out in regards to the number of algo's offered. it would make sense to have algo's in different market (FX / Index Futures / Commodities / Bonds) when they are not correlating. but given from what i read market seem to be correlating closer and closer.

still, from a marketing point of view more is better here. not talking LOTS, but more than one market.
 
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