What do you do with your spare system?

O

OddTrader

What would you do with your spare/old system (with less profitability), while constantly trading with your main system with better profitability?

- Forget completely about the spare system?

- Sell signals from the spare system?

- Sell the spare system? To whom?

- Run a CTA program with the spare system? Any conflict of interest?

- Start a hedge fund with the spare system? Any conflict of interest?

- Trade for a FOF/institution with the spare system? Any conflict of interest?

- What else?

All comments/PMs are welcome!
 
Quote from OddTrader:

What would you do with your spare/old system (with less profitability), while constantly trading with your main system with better profitability?

- Forget completely about the spare system?

- Sell signals from the spare system?

- Sell the spare system? To whom?

- Run a CTA program with the spare system? Any conflict of interest?

- Start a hedge fund with the spare system? Any conflict of interest?

- Trade for a FOF/institution with the spare system? Any conflict of interest?

- What else?
More...

- combining it with main system, to help diversify?
 
Quote from OddTrader:

What would you do with your spare/old system (with less profitability), while constantly trading with your main system with better profitability?
More...

It depends on your skill set in monetizing your knowledge, how much effort you want to devote to this effort and who you know that can carry you over the speed bumps in the opportunities you listed.

Your opportunities roughly divide into the following categories.
  • Selling system
  • Selling signals
  • Selling management
  • Selling ETC (Education, Training, Coaching)

Each has its own requirements with respect to you.
  • Your skill set?
  • How much effort is required initially?
  • How much effort is required on an ongoing basis?
  • Who do you know that will add leverage to the opportunity?
  • What kind of returns are available?

When I examine an opportunity, I list the pros and cons for each category with respect to the requirements. Often performing this exercise on paper leads me in a different direction then my a priori guess.

Further thoughts...
One advertising option is paid advertising on this forum.

I can't speak to the conflict issues you mentioned as that is not in my skill set.
 
Quote from OddTrader:

What would you do with your spare/old system (with less profitability), while constantly trading with your main system with better profitability?

- Forget completely about the spare system?

- Sell signals from the spare system?

- Sell the spare system? To whom?

- Run a CTA program with the spare system? Any conflict of interest?

- Start a hedge fund with the spare system? Any conflict of interest?

- Trade for a FOF/institution with the spare system? Any conflict of interest?

- What else?

All comments/PMs are welcome!
More...

Thanks guys for the feedback.

After a bit of research, finally I think ideally the best alternative should be Remote Prop Trading.

Q

Even when proprietary traders are allowed to trade with their own firm, they always trade with others as well, including competitors firms, and will execute transactions with whichever firm best enables them to achieve profits and mitigate risks.

--- An Introduction to Investment Banks, Hedge Funds, and Private Equity: The New Paradigm by David Stowell

UQ

The following new book will be launched soon.

One Good Trade: Inside the Highly Competitive World of Proprietary Trading ( By Mike Bellafiore )
 
It really comes down to who you are as a person and where you are as a trader.

There are many who can't make a good system and can't trade and they sell signals, do software, mentor for a price, and gullible young traders on Friday afternoon are looking at back of Futures mag looking for next great guru who for a few thousand will sell you the thoughts of the holy grail.

There are some who make incredible methods but simple can't trade, they might sell signals, do software, etc. ... hard to sell if you don't have brokerage statements to back you up. And gullible traders generally are dreaming the dream of sitting on that beach and are afraid to ask for the statements.

Then there are the traders who have made it to the 5% and early in their trading career, trying to generate bigger accounts, have incredible energy, selling the signals, managing money and mentoring for a profit.

And after a while, you simple don't want to bothered by people, you get tired explaining the same concepts for the three-hundredth time to students, subscribers to your service lose money but service is profitable each week, selling something for a few grand and teaching someone your spare system isn't worth it for the time you have to teach it. Sometimes working with some people, rather have my toenails ripped out than do.

These days, I rather just well document the system and throw it in the pile with the rest, you never know when you might come back to it out of boredom.
 
Quote from JoePaterno:

- combining it with main system, to help diversify?
More...

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.
 
Quote from pspr:

- Provide a copy to NoDoji so she can put it in her trading book she is going to share with us all. :D
More...

The wonderful documentation capability by JH and his associates has been always a surprise to me! :D


Quote from Bob111:

in the drawer.no selling\sharing
More...

How many of your spare systems you are still keeping in the drawer, without selling/sharing yet?


Quote from Handle123:

These days, I rather just well document the system and throw it in the pile with the rest, you never know when you might come back to it out of boredom.
More...

Actually a good reason (you and) I should have evaluated/started the Prop path. Anyway, Never too late!
 
Quote from HowardCohodas:

It depends on your skill set in monetizing your knowledge, how much effort you want to devote to this effort and who you know that can carry you over the speed bumps in the opportunities you listed.

Your opportunities roughly divide into the following categories.
  • Selling system
  • Selling signals
  • Selling management
  • Selling ETC (Education, Training, Coaching)

Each has its own requirements with respect to you.
  • Your skill set?
  • How much effort is required initially?
  • How much effort is required on an ongoing basis?
  • Who do you know that will add leverage to the opportunity?
  • What kind of returns are available?

When I examine an opportunity, I list the pros and cons for each category with respect to the requirements. Often performing this exercise on paper leads me in a different direction then my a priori guess.

Further thoughts...
One advertising option is paid advertising on this forum.

I can't speak to the conflict issues you mentioned as that is not in my skill set.
More...

Thanks for the constructive pointers! They are very thoughtful ones indeed.

I don't think any headhunters would chennel ET hiring for their PropShop clients. However, I wouldn't mind posting on ET forums some live calls that are generated from the spare system.
 
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