I have discerned a system for US equities, need help showcasing it to potential clien

Discussion in 'Strategy Development' started by rodneywkr, Mar 23, 2011.

  1. I have a really great system for us equities and need help taking it to the next level for my lack of capital
  2. Can't you trade your system for a year using 100 share lots to prove some sort of track record?
  3. Sort of hard ..... example: this month my system kicked out 49 positions.

    This month started yesterday...... was up 2% at end of the day. My system is a monthly play.... usually in/out of positons within 18 trading days or less
  4. Why not spend the next 12 months keeping track (month by month) of every stock trade generated, the entry, exit and return on each. Build a comprehensive spreadsheet detailing all relevant info. Then, once you have shown a certain level of success, it might be easier to prove that you've gotten something good.

    Otherwise you can try and tap all your contacts that are willing to invest in you and see if you can round up enough money to trade 100 shares of 50 stocks a month via prop leverage.

  5. I currently have a plethora of "paper trading" data. However, cannot really get anyone to give me the time of day once I say it paper trading.

    I do have a firm watching and they are saying without trades w/ real money its very very hard
  6. If you don't have Audited Financials for several years...
    Then you are not even running a business...
    And no serious person would waste 5 minutes on this.

    Most people jump start via family and friends.
  7. NoDoji


    There's a very good reason for this; although it seems totally counter-intuitive, trading real money produces different results than "paper trading" results.

    I personally mentored some traders last year, providing them with a proven strategy that, in its purest "no-brainer" form, resulted in consistent net profitability.

    In live trading, none achieved the results the system produces because they were unable to follow ALL the rules. The rules in their most basic "dumbass trader" form are simple:

    1. A setup appears and you place a trigger order. This is an order that triggers a trade entry if price hits the level that triggers the order.

    2. You place a fixed protective stop and a fixed profit target.

    3. You remain in the trade until the stop or target is hit or a new setup appears in the opposite direction, in which case you stop out of the existing trade and reverse position at the same price (stop-and-reverse).

    It took me months to get to the point where I could follow my own system when trading live. There were so many factors that (in my mind) prevented me from trading every setup and following the rules, among them:

    - Pending news releases

    - Price was already too low or too high to go lower or higher

    - The news was bullish/bearish and price was moving opposite the news, therefore idiots were pushing price and no way was I going to become one of them

    In my quest for the Holy Grail of trading I discerned many profitable systems, but what I discerned was tainted by survivor bias and in reality was capable of wiping out weeks or months of gains with a single trade. I had no cold, hard statistical data to back up these systems. In fact, my cold hard live trading data proved these were not consistently profitable systems for one reason or another.

    Later after a great deal of study and practice, I had cold, hard statistical data to back up what eventually became my system of choice, yet struggled to fully put it into practice when trading live.

    I taught my system to others who struggled (and still struggle) to put it into practice when trading live.

    I had one trader trade my system with amazing success in a sim account and choke when he started trading it live.

    This is why a proven live track record is so important to attracting investors.

    If you have a system that works so well on paper, trade it live and prove that it works over time through a variety of market conditions. You then may be able to attract potential clients.
  8. I totally understand.... b/c when I started trading live, as you stated, at first it was hard to follow the rules. And I have set rules for entry and exit.... its totally emotionless (if you follow the rules).

    Im currently "paper trading" along side my real account to see if I can ascertain a level of slippage etc..
  9. Adamk


    Everybody just told what to do,
    Why are you still asking the same question. It is like talking to a Klingon :D
  10. please let me know the question I asked in the last reply? I made a statement, didn't ask a question in my last post..
    #10     Mar 24, 2011