Question about selling a strategy

T

TexasTeaTrader

Long story short, I am a discretionary trader trading crude and Nasdaq. Took some heavy losses and blew up my account ( due to not following my plan and taking stupid trades). Decided to automate about 25% of the strategy I was using to daytrade, so far as expected this strategy has been profitable in forward testing. Problem is I have a profitable strategy and no capital to trade it with.

Trying to get an idea of how much one could get for the source code of such a system? Willing to sell the full source to only 1 person, no none disclosures or crap like that just as long as you didn't resell it. Written in c# for ninjatrader.

Have been forward testing it since mid April, and so far it has netted a profit of $6290 after commission trading 1 contract per trade. The strategy can be scaled up, have tested as many as 20-100 contracts per trade.

Attached the stats of the strategy.
 
TexasTeaTrader said:
...Problem is I have a profitable strategy and no capital to trade it with...
More...

Easy fix...

1) Get a temporary 2nd job and save up your money so that you are able to trade your profitable strategy.

Several ET members have done such and one in particular worked 3 jobs.

2) Get a personal loan from the bank.

This will only work if you have a job.

3) Garage sell to get rid of stuff you no longer need that someone else may need.

Everybody has junk they need or should get rid of. I recently had a garage sale...got rid of a lot of stuff and pocketed almost 2k. I'm going to use the money to buy some nice sports equipment.

4) Reduce your spending expenses and the money you save.

Stop the eating out, get rid of the cable, get rid of the cell phone, party less, buy cheap clothing and dozens and dozens of other expenditures that can be cut for a year or so. Live cheap as possible. Seriously, one of my close friends has a son in grad school. The kid got a night time pizza delivery job so that he can take home free (bad order) pizzas at the end of day. He then put them in his freezer for breakfast, lunch and dinner while having another job fulltime during the day. In addition, he lived out of his van to save more money just to raise capital to start his own business. Took him two years to raise 50k and now doing well in his own business...some kind of work involving architects. That's hungry (pun intended) to succeed.

I can go on but I think you get the point. You do have options for raising capital to trade with and if you decide not to do such...I recommend you stay away from trading because its really about "making money"...right.

Think about the above very carefully. You could have done this before April and the paper profit you mention of $6290 could have been real money. Heck, you could now have been trading 2 contracts by now after your 1 contract...now imagine where your account could be at by next April 2015.
 
wrbtrader said:
Easy fix...

1) Get a temporary 2nd job and save up your money so that you are able to trade your profitable strategy.

Several ET members have done such and one in particular worked 3 jobs.

2) Get a personal loan from the bank.

This will only work if you have a job.

3) Garage sell to get rid of stuff you no longer need that someone else may need.

Everybody has junk they need or should get rid of. I recently had a garage sale...got rid of a lot of stuff and pocketed almost 2k. I'm going to use the money to buy some nice sports equipment.

4) Reduce your spending expenses and the money you save.

Stop the eating out, get rid of the cable, get rid of the cell phone, party less, buy cheap clothing and dozens and dozens of other expenditures that can be cut for a year or so. Live cheap as possible. Seriously, one of my close friends has a son in grad school. The kid got a night time pizza delivery job so that he can take home free (bad order) pizzas at the end of day. He then put them in his freezer for breakfast, lunch and dinner while having another job fulltime during the day. In addition, he lived out of his van to save more money just to raise capital to start his own business. Took him two years to raise 50k and now doing well in his own business...some kind of work involving architects. That's hungry (pun intended) to succeed.

I can go on but I think you get the point. You do have options for raising capital to trade with and if you decide not to do such...I recommend you stay away from trading because its really about "making money"...right.

Think about the above very carefully. You could have done this before April and the paper profit you mention of $6290 could have been real money. Heck, you could now have been trading 2 contracts by now after your 1 contract...now imagine where your account could be at by next April 2015.
More...


Thanks for the reply, you made some good points.

Still wondering how would I price the strategy if I wanted to sell 1 copy of the source.
What would something like this be worth?
 
A strategy that's traded in live markets for 2 months isn't that exciting of a proposition.

I think you need more time for it to prove itself.
 
newwurldmn said:
A strategy that's traded in live markets for 2 months isn't that exciting of a proposition.

I think you need more time for it to prove itself.
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True, but ive been trading these signals for about 2 years discresionary whenever I spotted them. Only automated them recently.

The signals are based off a p&f pattern ive noticed in crude oil, worked 2 years ago and will continue to work in the future.
 
TexasTeaTrader said:
True, but ive been trading these signals for about 2 years discresionary whenever I spotted them. Only automated them recently.

The signals are based off a p&f pattern ive noticed in crude oil, worked 2 years ago and will continue to work in the future.
More...
You're confused on the meaning of discretionary. You can't automate discretionary. I think you mean to say you've been trading manually and you've recently automated those signals.
 
Just today on ET there is
an individual with money looking for a mentor and/or system.
an investor who made a 700 % return last year.
and an employer who will provide a 500k house.

Endless opportunity!
 
eurusdzn said:
Just today on ET there is
an individual with money looking for a mentor and/or system.
an investor who made a 700 % return last year.
and an employer who will provide a 500k house.

Endless opportunity!
More...

Yeah ones a troll and the other one wants you to sign a 10 year contract.

If I was fully automated 2 years ago, I wouldnt be selling it now. It sucks that I have to but thats life.
 
the fact that it was manually entered and part of a larger portfolio makes the previous history irrelevant.

I think you will be hard pressed to find someone to sell the system to who will pay you enough to make it worth it for you to sell it once.

It being a day trading system that can only handle 200 contracts could be a further problem as there is no guarantee you won't sell it to others and the edge is eliminated.
 
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