Some partners and I are looking to put a prop group together, but we don't want to hire the usual drifters that apply to new prop firms. We would like to purchase a system that could be taught to monkeys. It doesn't need to produce much...maybe $200-$300 gross per trader per day. Just something that consistently makes money. We would pay between 10-20% of the net profits of the group on a monthly basis, and we would produce all of the legal confidentiality paperwork that you would need to feel comfortable. We don't care if it's forex, futures, stocks, or bonds. We have connections to get favorable front ends/clearing for all. Thank you, and I await your replies.
call me skeptical, but I think its gonna be tough for an agreement such as this, offered up in this way, to come to fruition between to honest people. So if you are the honest part of the equation, be careful w/ the applicants that have probably filled your PM box by now.
Waiting for my ride, perusing ET for entertainment value, seems I've found some. So a trader GROSSES $300 per day and at mo. end you want to pay him/her 10% of the NET on that which will come to what , $20.00 per day,$5,200 per yr. Dude, monkeys get more than that in bananas. Is your operation in Chad? I hope you've had more more to drink than I have.
We are looking to build a group based on the scalabilty of the system. I guess I should have specified some things. The difference in payout is based on the success/ability of the system. 10% would be your payout if we build the system with humans. 20% would be the payout if it appears better to turn the system into a program. The reason that the program gets a higher return is due to the fact that we don't have traders to pay in that scenario. We would ideally like to have over 20 guys each banging away at the system each day. So, for quick math, 20*300=6000. That's $600 a day for doing nothing other than seeding my group with an idea. 600*240=$144K/year. That's a lot of bananas. We have the ability to get more than 20 guys. It's all based on the scalability of the system we get.
Well if someone had a scaleable system that made consistent money, they would just trade and in no time they would make a lot of money. Even if they only started with 5 contracts they would so go from 10 to 20 to 50 to 100. Why would they want to sell it, to you or anyone else? Therefore any system offered to you is likely to be bogus, if it makes money in the first few months just by luck, the seller will be very happy, risk free money from you. Otherwise if it didnt work out, then well what do they care, they didnt lose anything.
We would sell if you would pay between 80-90% of the net profits of the group on a monthly basis, this if you would produce all of the legal confidentiality paperwork that we would need to feel comfortable. nononsense
It's easy to tell the developer, you trade a 1 lot on the system, or more so... customize (tweak) the system and say you don't trade it. The developer has more to lose than you. If it's a start up, hire the developer as the head researcher or offer a % of the firm's profit as a partner. Or... Pay a reasonable amount upfront, then pay % of the profits. ... But... this all comes down to how good the developer is. If you get stuck with a sucker developer/system, you're messed up.
To Businessman: I agree, that if someone had a surefire scalable system, they should trade it themselves for 100% of the profits. However, consider this: 1) Not every trader likes trading. The stress does knock out lots of guys every day. If you had a good system, but wanted to retire, why not let it work for you? 2) Some traders are afraid of big size. They work great with 5 lots, but 10 lots scare the crap out of them. This is a risk free way for them to capitalize on their potential. 3) Students. There are probably thousands of kids around the globe devolping trading systems for class projects. Say one works...but it's not the golden ticket. It only makes about $500 a day. Decent money, but he'd rather try again for the big score. Why not sell this idea to someone who actually wants it? 4) Some people lack capital and connections. What about kids in India and China? They have more education that you and I combined, but no access to utilizing their skills. Maybe they look here? Who knows. It's just a shot I'm taking, and I've received several decent replies to my PM, so it appears to be working so far. Thanks to all that have helped.