I want to build a group of guys around your system.

Discussion in 'Trading' started by microjohn, May 18, 2005.

  1. sectorboy has a really good point. if someone has a really good computer system, you don't increase your manpower size, you just feed more capital into the one person, one computer.
    you really got everything backwards. and 10%!!!!!! what an joke.
     
    #11     May 18, 2005
  2. NKNY

    NKNY

    Bingo....

    Thats exactly what he's looking for....
     
    #12     May 19, 2005
  3. With a "consistent" earning power of $3,125,000 per year (=$12,500/day x 250 days), assuming without compounding, the value of a system like this would be already extremely expensive, imo. :confused:

    I have no idea how much of its worth when compounding is applied to this kind of "consistent" systems. :confused:
     
    #13     May 19, 2005
  4. Yes. As it was mentioned on the other thread, that's still based on a 1 lot...

    With all the bumps the individual traders will be wanting and getting... ( 10 - 50 lots... 20 average... ) that'll amount to $60 million or so...

    Also, little tweaks can be considered as "not trading" the system. Forms of tweaking would be to use the basis and change the trading rules... for example, the system might be based on a great indicator you developed, but trading off it differently. Others would be to change a line of the code and call it a different system....

    Another is the constant monitering for the system. Obviously, systems do fade and the developer and/or the resident manager has to manage the systems. There's the constant labor on the developer's side...

    Other types of extra labor would be the change in environment like equipment, ( OS, datafeed, execution software, and etc.), exchange issues (They change the rules, here and there... like increments, tickvalue, and other stuff...), and others...

    For every minor change, there's the tech. support and monitering needed on the developer's side. It's not as simple as "Buy and leave" when it comes to buying a system in the way you're asking to. If you want to do it the easy way, just buy a trading system from a vendor like any retail trader or deal with newbie system developer which you can take granted of the naiveness...

    If you want to deal with institutional-level system developers (People who actually have skills and experience towards what you're looking for), then you need to deal it in a different way...

    With the quality of the system you're lookin... It would seriously be better if you hook up with a hedge funds so that you can manage a portion of their capital (10 million+) with 10% of the profits.... If you have real "good" system, it's not that hard to look for sponsors...
     
    #14     May 19, 2005