Your trading edge/logic's security

Firstly, if people start mirroring your trades, that's a good thing. The extra buying power will help to push the market in your direction.

Secondly, anyone that would be dumb enough to mirror another person's trades is going to go broke. What if the star hedge fund manager is using futures to hedge a share portfolio with a different broker. You copy the futures trades but don't know about the share trades. Suddenly, the you're losing a fortune while the hedge fund manager is market neutral. In practice, it's not very smart.
 
Quote from EvOTraderV2:

All you can really do to protect against a broker or anyone else accessing your strategy is to have a non-disclosure agreement with the broker that is pretty solid and can protect you if you find out they did use your strategy; however, there's no way to "keep it a secret" from anyone.

In my opinion, there's no such thing as a secretive strategy which yields such high returns that retail brokers have never seen anything like it. If it does yield great results, it's likely only a matter of time before the SEC shuts it down.

You don't have much protection against theft of your strategy unless you open your own proprietary trading firm and broker-dealer. In that case, nobody aside from the SEC and your SRO will have access.
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How can the broker/dealer find out the strategy if it's residing on a different server?
 
Quote from Runningbear:

Firstly, if people start mirroring your trades, that's a good thing. The extra buying power will help to push the market in your direction.

Secondly, anyone that would be dumb enough to mirror another person's trades is going to go broke. What if the star hedge fund manager is using futures to hedge a share portfolio with a different broker. You copy the futures trades but don't know about the share trades. Suddenly, the you're losing a fortune while the hedge fund manager is market neutral. In practice, it's not very smart.
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LOL.

Unfortunately, this reasoning doesn't apply to traders who are trading with a smalltown prop firm. And I think these kinds of traders are the target group of OP in this thread.
 
Like I said early in the thread is I can confirm prop firms do try and mirror top traders strategies, as for the extra buying power well it really depends on the strategy and have even know a few strategies to stop working for the trader as the firm was front running them
 
Quote from coachd:

Like I said early in the thread is I can confirm prop firms do try and mirror top traders strategies, as for the extra buying power well it really depends on thestrategy and have even know a few strategies to stop working for the trader as the firm was front running them
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That's the reason I'll never join a prop trading firm. I keep things more secret than the Coca-Cola recipe on my private trading server.
 
Quote from Runningbear:

Firstly, if people start mirroring your trades, that's a good thing. The extra buying power will help to push the market in your direction.

Secondly, anyone that would be dumb enough to mirror another person's trades is going to go broke. What if the star hedge fund manager is using futures to hedge a share portfolio with a different broker. You copy the futures trades but don't know about the share trades. Suddenly, the you're losing a fortune while the hedge fund manager is market neutral. In practice, it's not very smart.
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Not if they figure out my strat and FRONT run my trades. Then it's reverse
 
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