How much would you pay for algorithms

Discussion in 'Professional Trading' started by WallstYouth, Apr 27, 2006.

  1. Generic question to traders here how much would you be was willing to pay if someone offered to turn your standard trading methodologies that you use in head today into a working, functional algorithm that could be plugged into the platform of your choice? I know this probably wouldnt work with alot of traders as most use emotion and gut feelings when deciding when to buy/sell etc..
  2. not much. in fact, i'd have to seriously consider whether i wanted to reveal my strategies.
  3. There's a problem with selling strategies:

    Generally, nobody sells a working one (or atleast one that they believe will continue to work).

    So if you're buying strategies you're mostly just going to get junk and if you're selling strategies (even working ones) your not going to get what they are worth just because everyone knows what's for sale is junk.

    There are rare cases were someone comes up with a great strategy and is undercapitalized, but I think that's a pretty narrow situation.
  4. nitro


    You don't understand the question posed.

  5. You got me. I misread the question.

    Still if I had a good strategy and I couldn't program it myself, I'd be very wary of someone who was offering to automate it for me.

    The basic theme is the same though: no one shares a good strategy.

    If you really want it automated your better off figuring out how to automate it yourself.
  6. NO ONE SHARES A WORKING STRATEGY. and only fools buy them. and if i sold u a strategy and knew everyones strategy I'd know how to exploite it.

    take a look at hedge funds. there are millions of 3rd party software development firms who can programme ANYTHING. but yet they don't ask them, they prefer to employ individual programmers to work for them under highly confidential contracts.

    the truth is no single strategy works all the time anyways so who cares :confused: if u dont know how to apply which, at in what seasonsssss
  7. nitro


    I don't disagree with any of that. But even someone like DE Shaw or the founder of Citadel, while they are very capable of programming their own strategies and did so when they started, eventually have teams of smart people doing that kind of work at their respective companies.

    In today's markets, the really good strategies are probably too expensive for any but the most determined individual to implement - imo.