Amazing system but what to do?

Discussion in 'Professional Trading' started by Joab, Nov 9, 2006.

  1. Joab

    Joab

    I have an amazing little clean system that I developed that trades the DIA or if you prefer the YM fut contract.

    It gives on average 2 trades per week and trades off a 15m chart, therefor it's as boring as baking a cake.

    I trade it myself but I'm also willing to share it with a few others but therein lies the problem for me.

    I do not believe in charging $ for something unless it works but on the other hand I don't want to give it to fools that have no self control.

    Ideally I would like 3 disciplined traders with decent size accounts that will keep this locked up and gold.

    I will happily take a share in the profits for my work and efforts.

    How do I go about protecting the method and myself from being taken advantage of. ????

    Suggestions please and spare the bashing I will not respond.
     
  2. In business there is such a thing as a non-disclosure contract. This might work for you.
     
  3. Have them sign nondisclosure agreement .
     
  4. Joab

    Joab

    Non Disclosure are a must that's for sure I agree BUT what I'm more concerned with is wasting my time with fools that either.

    A. Don't have the discipline to trade a boring method like this because it takes constant monitoring each 15m candle.

    B. Don't have the sufficient funds

    C. Will give up on it to easy.

    etc..
     
  5. A. What do you consider a "decent' sized accout?
    B. What % of the profits will you want?
    C. What criteria will you use to determine the discipline you're looking for?
    D. What does the trader get if your system fails to produce profits?
    E. A "well written" non-disclosure agreement will work to protect your "secret system", but only to the degree that a good lawyer couldn't pick it apart.
    As a note, I'm not a candidate for your system, but I would think the above questions are what someone would ask, and you as a businessman should prepare to have answers for.
     
  6. Although you are asking how to 'share', I would recommend automating it. This could be one tiny C application, or even few lines of VBS running in the system tray checking for an entry. It could be as simple as when this rare opportunity arrives a file is written - your system tray pop ups with a message. Worried about resources, run it on a dedicated machine. Having said this, I am guessing that it is not possible to use your exiting trading app to create this rare alert sequence? If that is the case then this partial automation above should help, then just enter the trade manually.
     
  7. Joab

    Joab

    A. $200,000
    B. 10% net monthly
    C. Don't know how to judge this yet.
    D. Nada, after I disclose it your free to do any backtesting you like but it's not static and changes bar by bar so that makes it difficult.
    E. Your right :cool:
     
  8. In my view, you are starting at the wrong end, putting the cart before the horse. Don't worry about qualifying prospective investors at this stage, an NDA, etc. Do focus on qualifying yourself / your system. Ask yourself -- what would it take for a "disciplined trader" with a "decent size account" to be interested in what I have to offer? Such people tend to be both busy and selective, among other things.

    Strikingly, your intro is silent on the issue of performance. Characterizing it as "amazing", without any supporting details, actually has the opposite, negative effect, credibility-wise. Two immediate suggestions:

    1. Post a detailed performance report and a real-time (only) equity curve, for starters.

    2. Trade your system live on Collective2 and start accumulating a public, third-party, real-time track record. Offer FREE subscriptions to your signals initially. While you're at it, study your (stiff) competition there and see if you can identify your competitive strengths and weaknesses.

    There's much more to this process, but I'll let you reflect on that.
     
  9. BSAM

    BSAM

    What is the point of this thread; other than Joab trying to make a few bucks for himself?

    Yo Joab.....I can show you some great ways to make some good trades. Of course, I would have to charge you $10,000 and have you sign a non-disclosure.

    This thread is a nonstarter.
     
  10. What to do? Fuggetaboutit....

    A successful methodology is likely working "only for now". The market will change and it won't work any longer.

    The overall key to the markets is to "make hay when you've got it going", then be ready to figure out the market's "new deal" when it stops working.

    You don't have IT. Nobody does. Any successful strategy is only temporary.

    However, it's encouraging that you're working off of a 15-minute chart and trading infrequently. At least it's not some dumb-ass scalping play...

    JMO, of course.
     
    #10     Nov 9, 2006