Can this trading system be sold?

Discussion in 'Professional Trading' started by alf111, Jan 16, 2022.

  1. newwurldmn

    newwurldmn

    how can you tell that?

    leaps would have performed poorly in 2018 and 2015 when you would have paid a years worth of theta and had little delta pnl.
     
    #21     Jan 17, 2022
    murray t turtle likes this.
  2. Zwaen

    Zwaen

    Not naked leaps alone in isolation, but combinations - molded in a method - to minimize theta impact.
    Profitable every year is more challinging indeed. Maybe combinations of ‘butterflies’ to capture sideways or bearish movement can help, but you will almost certainly pay for this in the long run since risk is reduced.
     
    #22     Jan 17, 2022
  3. newwurldmn

    newwurldmn

    sounds like you have no idea what you are talking about.
     
    #23     Jan 17, 2022
    Zwaen likes this.
  4. Zwaen

    Zwaen

    You are probably right
     
    #24     Jan 17, 2022
    newwurldmn likes this.
  5. ZZ Trader

    ZZ Trader

    I am answering to the person that started this thread: to be honest with you, I am in the industry (and have been for many years) and I know quite a lot of folks in the industry, and I don't think there is such a thing as "sell a trading system" unless your system is already doing very well with some established set of clients or firm with an AUM >1 M USD (and it would be better if it is >3-5 M USD, if possible, and a 3 years track record,minimum, plus all the code to backtest and fully automate the trades).

    Nobody is going to spend their valuable time to talk to you or to test your strategy unless they know you already have some pedigree or have worked at a fund, have some very impressive career history in science related fields, been a top student at a top university, etc.

    You see the problem is the industry has its own set of criteria to select who they want to talk/work with, they don't just buy systems from someone that was passing by.

    This does not mean you cannot find a way to profit from your strategy.

    To profit from your strategy you have to build some form of investment management business around your system and then evolve from there.

    One way is to open your own fund (there are platforms for emerging or start-up fund managers), then trade your money as a start-up fund, and then find clients, it's not a walk in the park but there are not many alternatives, this path is one that can maximize your returns if your strategy is good.

    Managing accounts for clients would be more annoying, less profitable and you expose your strategy to clients, but it's cheaper than opening a fund, you just need a license to satisfy the various regulators.

    A guy at Millennium once told me something that pretty much sums up the problem:

    "You have to find somebody to give you capital for your strategy: a fund, a bank or a clueless rich person!".
     
    #26     Jan 18, 2022
  6. gaz0001

    gaz0001

    I'd be happy to test the system with a smallish account. 30k USD.

    PM me if your interested.
     
    #27     Jan 22, 2022
  7. %%
    I think he is strangely right on someone [anyone] not wanting to ''divulge a get rich quick scheme'':D:D
    Good good thing for some non-selfish people, some shared things ,[trends] dont go bad, because they are shared.
     
    #28     Jan 31, 2022