I am exploring opportunities. I trade quantified swing strategies, mostly daily but I have some weeklies and can modify some to even trade monthly. My primary strategies are doing very well so I wouldn't consider selling them or interfering with them, but I have lots of stuff that is still very profitable that I don't have a use for. I wouldn't mind generating some extra income from them. They could work well for a newsletter, hedge fund, Covestor. I am planning to set up a model for Covestor but that's as much a matter of establishing a track record as anything. I don't think they have the customer base yet to really drive a lot of income through subscriptions to the models.
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What do you do with your spare system?
- Thread starter OddTrader
- Start date
Quote from OddTrader:
Your main system gets 40% while your spare system targets only 20%. Combining alone would not be a good decision.
However, using OPM to trade the spare system would be a true and better diversification, imo.
Hmm, I don't trade with leverage. I don't need it to get significant returns and I wouldn't want the added risk this would bring .. unless I can somehow share in the profits but not the risk.
4-5 systems,that use to work great,most last long enough and did earn at least six digits..they still profitable,but not as it use to be.How many of your spare systems you are still keeping in the drawer, without selling/sharing yet?
maintenance and amount of work\trading required is not worth it to me right now.
Quote from dwpeters:
I am exploring opportunities. I trade quantified swing strategies, mostly daily but I have some weeklies and can modify some to even trade monthly. My primary strategies are doing very well so I wouldn't consider selling them or interfering with them, but I have lots of stuff that is still very profitable that I don't have a use for. I wouldn't mind generating some extra income from them. They could work well for a newsletter, hedge fund, Covestor. I am planning to set up a model for Covestor but that's as much a matter of establishing a track record as anything. I don't think they have the customer base yet to really drive a lot of income through subscriptions to the models.
Covestor or something like that seems interesting. imo, it depends on the maturity of your spare systems. Trading with Prop-Shops may allow any further necessary (yet unknown) fine-tuning of a spare but to-be-mature system becoming really profitable fairly consistently in the long run.
Establishing track records with Prop-Shops is also valuable. Killing time by fine-tuning a spare system, for its challenges and potential returns, should be much better than merely posting on ET. lol
Quote from dwpeters:
Hmm, I don't trade with leverage. I don't need it to get significant returns and I wouldn't want the added risk this would bring .. unless I can somehow share in the profits but not the risk.
Need to check further to clarify/ensure that.
Quote from Bob111:
4-5 systems,that use to work great,most last long enough and did earn at least six digits..they still profitable,but not as it use to be.
maintenance and amount of work\trading required is not worth it to me right now.
A possibility is one day when the current main system will not perform well as expected, we may still use the spare system(s) immediately providing we now keep the spare system active and updated constantly.
A "system" either works or it does not work. If it works, why would you ever sell it - if it does not work, why would anyone ever buy it?
Either run it or scrap it.
You didn't mention - does the "old" system overlap with the "new" system? If so then you don't actually have a new system, you have simply optimized your old system.
Either run it or scrap it.
You didn't mention - does the "old" system overlap with the "new" system? If so then you don't actually have a new system, you have simply optimized your old system.
Quote from WinstonTJ:
A "system" either works or it does not work. If it works, why would you ever sell it - if it does not work, why would anyone ever buy it?
Either run it or scrap it.
You didn't mention - does the "old" system overlap with the "new" system? If so then you don't actually have a new system, you have simply optimized your old system.
perhaps one day you would understand and find it out by yourself.
My case is accidentally I developed two completely independent systems with some positive correlation between them. They were based on very different assumptions/approaches.
When comparing their performance, I found they both work quite well, but one has relatively better performance than the other. Combining them would lower down overalll profitability, however with only fairly limited improvement of variability.
Finally I found out a smoother curve (coming together with a reduced profitability) can be better attained by utilising options, rather than combining these two systems by means of diversification.
Then I gave up any further fine-tuning on the secondary system fairly long time ago, which became a spare system till now.
When comparing their performance, I found they both work quite well, but one has relatively better performance than the other. Combining them would lower down overalll profitability, however with only fairly limited improvement of variability.
Finally I found out a smoother curve (coming together with a reduced profitability) can be better attained by utilising options, rather than combining these two systems by means of diversification.
Then I gave up any further fine-tuning on the secondary system fairly long time ago, which became a spare system till now.