For profitable traders much is your strategy worth?

Discussion in 'Trading' started by vincentnyc, Feb 2, 2019.

  1. This is only for profitable traders that have at least of one year of trading with real money. If you were to sell and train someone your strategy. How much would you sell it for?
  2. qlai


    Discretionary vs. Automated ... Big difference!
  3. Discretionary
  4. Robert Morse

    Robert Morse Sponsor

    This is not enough information.
  5. R1234


    The age old question comes up - if a strategy is that good why would anybody sell it?

    I've designed stuff that is decent but not earth shattering - low teens annual returns with Sharpe of about 2.5. The thought of offering it for sale has crossed my mind but the problem is that I derive a large portion of my living income from trading my strategies. If I sold it and it went on to lose its edge, whatever I sold it for would have to cover my potential lost future income. This would be too high a price.

    A rule of thumb is that any explicit "system" offered for sale is no good. However in the past I have paid for trading "frameworks" or "approaches" that got me thinking in new ways which were useful.
  6. what information do you need? is it a simple question. answer anyway you like.
  7. maybe you want to teach or help out someone? if you think by selling your strategy will hurt your future earning...then maybe your strategy isn't really that good in the first place?
  8. EsKiller


    Or maybe your brain isn't really functioning that good in the first place ? If I sell my strategy, then I'm competing with somebody else for the exact same fills that I need. If I'm already trading size, that can pose many problems.
    smallfil, MoreLeverage and schweiz like this.
  9. oh i see....u like to play with penny stocks. daddy don't play penny stocks.
  10. schweiz


    Following that logic you basically say that Renaissance/Medallion has not a good system as they share it with nobody. Same for Virtu and Citadel.
    Selling your strategy means it is not good, as you don't sell a good system. A good system generates so much money that you don't need the pocket money you can catch by selling it (and potentially ruining it).

    Unless you can sell it 1 time for a crazy amount of money. If I can sell for a lot of millions I might sell, but not for a few thousand or even a million.

    You can shares your trading system, it will apparently not harm you and for you it will be a proof that your system is good.
    Last edited: Feb 2, 2019
    #10     Feb 2, 2019
    MoreLeverage, soulfire and jl1575 like this.