Has anyone made consistent trading profits with a purchased system?

Discussion in 'Educational Resources' started by Thunderdog, Mar 30, 2004.

  1. After casually reading some posts in different threads about purchased trading systems, I cannot help but have a question. Has anyone, anywhere ever actually made reasonably consistent money trading a bought system? More to the point, have such trading profits even covered the cost of the system?

    I don't care if the system is a black box, a gray box or a fuchsia-colored box. It does not matter if the purchased "product" is software, a manual or a lucky scarf and a ouija board. Did it make money?

    My strong suspicion is that the answer is no. Nonetheless, there appears to be a market for these systems. Therefore, I think it would be useful to dispense with the myth of profitable bought systems by creating this thread. It can be referred to by those who are considering the purchase of a trading system and require a reality check.

    In my mind, a bought trading system, regardless of the cost, represents a something-for-nothing deal. Let us put that into perspective. Even if a system costs $5,000, it is inconsequential if you believe that it will significantly enhance or totally replace your existing primary source of income. It is the near equivalent of a "free lunch." And really, how often has the market or ANY of its participants ever given you or anyone you know anything even remotely resembling a free lunch?

    Perhaps I am being too skeptical, or even cynical. If so, please advise.
  2. Most good systems are not for sale.

  3. Actually, I am inclined to believe that there are no good systems for sale. (That statement can be read two ways, both of which are correct in my opinion.)
  4. Just one - a manual I purchased that was more guidelines than a system. I still use it today.

    But, I have bought 100 books and systems that are worthless.

    However, like anyone else, I was always looking for that needle in the haystack.

    I think it is the pursuit of the dream - and people do not want to give up on the dream. If they do, they have nothing left!!!
  5. ramora


    I bought 3 systems years ago in my 'lose money fast' stage. (It was ugly...)

    You can find systems equal to most commercial systems at WealthLab. http://www.wealth-lab.com/

    To see a comparison of most commercial systems and how they trade in real-time you can go to http://www.attaincapital.com/ You can subscribe to a free daily system update from them. Very helpful in understanding how these systems trade day-to-day.

    If there was a system available that would deliver the results you desire, you would be able to find it on either WealthLab or Attain.... WealthLab being the best list of 'open source' systems, Attain the best list on the web of 'commercial systems'.

    Anyone have some better sites of trading system results?

  6. Perhaps they should work for the dream rather than just try to buy it.

  7. Yes, but did they consistently make real money for real people? Everything else is just filler. Did you or anyone you know consistently make money using any of the methods you refer to?
  8. I don't disagree - but, it usually takes trial and error in the form of blowing some $$$ on a system to arrive at that conclusion!!!

  9. In 1997 I have purchased Bruce Babcock's system and after slight modifications I still use it today .
    So that was a first "free lunch " I've got .

    You should be skeptical but not cynical , try to be realistic instead.
  10. 1) Paid $12K for one (ouch). Started trading 12/02, stopped 12/03. Initial equity $50K - high $94K, low $28K. Final equity $50.5K (and therefore did NOT recoup cost of software).

    2) Paid $1,900 for second one. Started trading 1/03, still trading it. Initial equity $50K - high $52k, low $26K. Current equity $32K (it has ranged between $30 -35K for the past 3 months.

    Both are "trend following systems" meaning they are trying to capture "big trends". However, the past 12 months have seen terrific trends in commodities but none of it ended up in my equity account.

    Draw your own conclusions. I leaned some things from these systems (what not to do) but any good mentor could teach you that for a lot less money.

    I've moved on to trading using my own combination of fundamental and technical analysis and doing well with it. Read "Winner takes All" by Gallagher and save yourself thousands of dollars. PM me if you want more details. Bottom line: if you want to trade mechanically, design and run your own system. I don't think a black box is the way to go unless you have a lot of play money to throw at commodities. - rcm.
    #10     Mar 30, 2004