Serious Question

[Real Money]

Thanks Bob. I read your other comment about taking things slow and trading your account conservatively. Right now I'm developing some other edges to compliment the above.

My goal is to have "super low risk" and "low risk" edges in addition to the above which is basically for the front month outright contracts.

Trump has been jawboning the market pretty hard recently. 50 point swings in ES happening in minutes is pretty crazy.

 

[Robert Morse]

Thanks Bob. I read your other comment about taking things slow and trading your account conservatively. Right now I'm developing some other edges to compliment the above.

My goal is to have "super low risk" and "low risk" edges in addition to the above which is basically for the front month outright contracts.

Trump has been jawboning the market pretty hard recently. 50 point swings in ES happening in minutes is pretty crazy.

Your namesake say it all. You need a verifiable Real Money track record running the strategy that you want to base a business around. If you are going to deviate into other test strategies, they should be kept separate if possible. If this is all backtesting, paper trading or an account with $25,000, I would focus on trading for yourself and make other plans later.

There are hedge funds and traditional prop firms that will look at unique strategies or data sets, but then you are giving them something they can copy before you can protect it.

 

[FXtrader8911]

1) Keep it a secret, trade the edge and run up your account XXX%, then repeat.
2) Approach a prop firm?
3) Trade it, make a track record and then approach a prop firm?
4) Sell it to people?
5) Something else?

The obvious is 1) if it works under all market conditions, but you won't know this till its tested for at least a year and until there is a major correction, a flash crash and several black swans. If it passes all those then just incrementally increase the capital invested and keep it for yourself, or, if you want to make a name for yourself, set up your own fund using the system. If you found the holly grail it's worth many, many times more to you than you can ever sell it for, good luck, hope it works out for you.

 

[bbpp]

The obvious is 1) if it works under all market conditions, but you won't know this till its tested for at least a year and until there is a major correction, a flash crash and several black swans. If it passes all those then just incrementally increase the capital invested and keep it for yourself, or, if you want to make a name for yourself, set up your own fund using the system. If you found the holly grail it's worth many, many times more to you than you can ever sell it for, good luck, hope it works out for you.

Not really.
If it is an intraday strategy it doesn't need one year to verify.
Because there can be many trades in one day and different day the intraday chart pattern just repeat in same way. Also different market conditions produce the same intraday chart pattern. If you put up an intraday chart and roll back to like one month, it will include almost all condition that an intraday strategy could experience.So I would say one month intraday trading record is enough to verify.
Also I would say he doesn't need to have a verified trading record if he is not looking for someone else's capital. He just need to verify for himself to believe the strategy is for real.

 

[Robert Morse]

So I would say one month intraday trading record is enough to verify.

This does not come close to meeting the requirements of any investor, seeder or allocator I have ever met, unless they know you well from past business dealing.

 

[bbpp]

This does not come close to meeting the requirements of any investor, seeder or allocator I have ever met, unless they know you well from past business dealing.

I meant if he is not look for someone else's capital, so he doesn't need to prove to anyone except himself.

Daily 10% , 800% monthly profit, why he still need someone else's capital?

In one year he could grow his own account to 100 billion.

 

[GRULSTMRNN]

That I can't agree more with. Whats there to ask? Trade your own account, you should be rich in no time. Not that I believe the claims of OP but if he believes in it then he should trade the edge. Unless of course OP gets orgasmic spasms out of getting scammed and lifted, in that event he should definitely approach prop firms and seek financial backers.

lol, it's because it's almost surely false. If you're too stupid to figure out what to do next, you're too stupid to have developed a better-than-renaissance-quant level algorithm - period. No exceptions.

 

[GrowleyMonster]

If you have already done this, making a steady 10% per day, then you are already rich enough to never again have to worry about what to do with things like that.

 

[bbpp]

There has been so much market inefficiency.
Once you see Trump tweets that he will raise tariff, and you look at gold, it is only up like 2 points. And it remains under +3 points for another 10 minutes, at the end of day it is up like 30 points. So if you buy wrong you lose 3 points, if you are right you make 30 points. And it is almost 100% certain that gold will be up big when tariff is raised.
I mean if you understand how gold work, and what is behind gold's move, then it is not difficult to profit at all.
When tariff raise--> buy gold, short equity.
When the opposite happen( like one side soften its stance), buy equity, short euro.
euro is much slower to respond than gold. You have plenty time to enter position at a cheap price.

 

[wrbtrader]

I meant if he is not look for someone else's capital, so he doesn't need to prove to anyone except himself.

Daily 10% , 800% monthly profit, why he still need someone else's capital?

In one year he could grow his own account to 100 billion.

Lets put it this way, he has not tried his method with real money...probably not for a single trading day. He would have mentioned such and shown documentation of such.

Market context changes many times in a year...less in a month of trading. Simply, a year of real money trading is needed at the minimum to ensure the system works in different market conditions...not just one condition that shows up for one month or so.

Thus, you have that correct...if he has something (e.g. automated, custom indicator, black box) or whatever...he'll be trading it now with real money and not asking hypothetical questions at this forum or any other forum.

In addition, there will never be a retail trader make 100 billion nor 1 billion.

Talk like that reminds me of a friend that buys lottery tickets every week. He's always playing with those hypothesis numbers too...if I can make 10 million each week, 40 million each month and 1 billion in a year...he'll be able to quit his job as a grocey store manager...

Really ?

As you stated, he only needs to prove it to himself and when he does that, he'll keep on using it and asking less hypothetical questions. Also, he may have designed something that requires a certain amount of capital...capital that he does not have.

If that's the case, why would he waste all of his time & energy in designing something that requires a lot of capital that he couldn't earn on his own from a job ?

I'll bet if he does 1) he wouldn't need to do anything else unless he's bored...similar to multi million dollar athletes having a side gig (e.g. restaurant, construction company, candy stores, marketing firms, dealerships, real estate and so on).

https://sugarpova.com/ or the George Foreman German Shephard Breeding dog business.

wrbtrader