This is a follow up from the 'Options Backtesting Software' thread, I'm thinking on a business plan and would like your opinions. Please don't hesitate to tell me if it sounds overly naive or optimistic 
Resuming the plan in a one-liner, I would call it "the make money button"
1) Put up a web interface where individual traders can try do what I do, only on a simulated virtual account rather than the real thing.
Within the constraint of a $5000 account, they can choose:
- Automatic trading: let the machine pick the optimal trades.
- Manual trading: they can choose from a pre-filtered list of trades, then for each trade they get a risk/reward screen.
The key component of this first phase is a button labelled "Make Money!". Question is, do they press it or not?
2) The goal is to have 1000 users satisfied with their portfolio performance (>= 30% annualized).
If they are, then they have the option of investing those money (or more) in real life.
The key component of this second phase is a button labelled "Invest Money!"
If 1000 users press it, the process moves to next phase.
3) I don't have the software and infrastructure for handling a capital of $5M (1000 users x $5000), but I'm pretty sure that if I get to this phase, I'll find financing for it.
Revenue source is trough commission only: 20% of the profits, no admin fee.
If I get financing, then I'll put up the required hedge fund and the software backing it.
4) The initial 1000 users can invest for real using the same auto or manual system.
Scaling up occurs: more invested money means more resources to improve the system (software, models, strategies), which means more invested money and so on.
Let the bashing begin!
Resuming the plan in a one-liner, I would call it "the make money button"
1) Put up a web interface where individual traders can try do what I do, only on a simulated virtual account rather than the real thing.
Within the constraint of a $5000 account, they can choose:
- Automatic trading: let the machine pick the optimal trades.
- Manual trading: they can choose from a pre-filtered list of trades, then for each trade they get a risk/reward screen.
The key component of this first phase is a button labelled "Make Money!". Question is, do they press it or not?
2) The goal is to have 1000 users satisfied with their portfolio performance (>= 30% annualized).
If they are, then they have the option of investing those money (or more) in real life.
The key component of this second phase is a button labelled "Invest Money!"
If 1000 users press it, the process moves to next phase.
3) I don't have the software and infrastructure for handling a capital of $5M (1000 users x $5000), but I'm pretty sure that if I get to this phase, I'll find financing for it.
Revenue source is trough commission only: 20% of the profits, no admin fee.
If I get financing, then I'll put up the required hedge fund and the software backing it.
4) The initial 1000 users can invest for real using the same auto or manual system.
Scaling up occurs: more invested money means more resources to improve the system (software, models, strategies), which means more invested money and so on.
Let the bashing begin!