What is required to legitimize my trading?

S

Seabasss

Hi everyone.

My business partner and I have spent a great deal of time developing an automated trading program. We have succesful backtests that span 10 years delivering a modest 15 percent per year without any human intervention. I am looking for opinions on how much live trading would be required to legitimize the process so that we would be in the position to instill confidence in potential investors. Thank you for your time and opinion.

Cheers,
 
Quote from Seabasss:

Hi everyone.

My business partner and I have spent a great deal of time developing an automated trading program. We have succesful backtests that span 10 years delivering a modest 15 percent per year without any human intervention. I am looking for opinions on how much live trading would be required to legitimize the process so that we would be in the position to instill confidence in potential investors. Thank you for your time and opinion.
Cheers,
More...

Trade it yourself. A steady fifteen percent is fantastic.
 
Seabass,

well done, curious what r u trading eminis stocks just curious and is ur backtesting over the ten years taking trades every month or is it just one trade a year. I have backtested many strats and i could only get it to work one year then blow up the next never had any thing back test ten years straight very nice. Curious if u r planning on selling it cause i would love to be the first on the list to purchase. My trading is very spuratic good one month then give it all back and so on i have not made it to the 5 percent of traders that make money every month. mayb some day i will keep us posted on ur venture sounds like ur going some where with those kind of results
 
I found the Madoff article quite humorous. I am not trying to sell you anything and I apologize for the inference that I am. Let's pretend I didnt make any reference to results but said I had a good strategy that can make money and has been proven in ten years of backtesting. How much live trading will it take to validate the results in most peoples minds in you experiences?
Thanks,
 
Quote from Seabasss:

I found the Madoff article quite humorous. I am not trying to sell you anything and I apologize for the inference that I am. Let's pretend I didnt make any reference to results but said I had a good strategy that can make money and has been proven in ten years of backtesting. How much live trading will it take to validate the results in most peoples minds in you experiences?
Thanks,
More...

No one really cares about live trading validation. They care about "how" you make the money--- will your edge last into the future.... backtested or live results mean little to the modern day sophisticated investor.

forget getting dollar one with a black box. those days are long gone.
 
Thanks for your candor Debbie. I would have thought that results would be more important to people than how it is done. I agree with having to convince people that you can trade in the years ahead. The fact that we can trade over every month for the last 10 years is somewhat indicative of success in the future in my opinion. I am trading it myself but quite frankly I have always dreamed of taking my trading and utilizing it to start my own firm. As I am a trader and not a fund manager I really just wanted opinions what would be acceptable to potential investors and some ideas of what direction I should go if i determine that becoming a professional firm is a direction we want to persue.
Cheers,
 
Quote from Seabasss:

Hi everyone.

My business partner and I have spent a great deal of time developing an automated trading program. We have succesful backtests that span 10 years delivering a modest 15 percent per year without any human intervention. I am looking for opinions on how much live trading would be required to legitimize the process so that we would be in the position to instill confidence in potential investors. Thank you for your time and opinion.

Cheers,
More...

Let us talk technically. Please provide the following details so I can tell you how much time I recommend for live trading.

(1) Timeframe in backtest/number of bars
(2) Instrument
(3) Number of trades (long short)
(4) Avg. bars in winners/losers
(5) Profit Factor
(6) Win rate
(7) Avg. win to avg. loss ratio
(8) Sharpe ratio

to start with.
 
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