Hi, Here's a suggestion from a noob... My investing strategy that I decided to share with everyone. I've decided to split my funds of my personal acct into 2. 50/50. 50% goes into all so called Fix-Income, high income and cap appreac. funds. I can easily yield a >8% and the AUM volatility, is very low, while sharp ratio is stable. Reason being, mid-long term investing for my future, and a with $100,000 AUM, I can happily take a $5-6k/yr just purely on dividend income. Sounds not bad, but not enough. The next 50%: I started IB with TWS, running automated trading strategies. I run about 5 algorithms, used to detect market movements, and they are do "pretty" well. +- $200 a day, 50-100 trades/day -Positions held no longer than 5 mins -no overnight positions -scalable to any markets. -Fully automated, hands off intra day trading, support up to 50 quotes (as per IB) The reason I do this because I want a strategy that has no effects on this bad and volatile market. Now I could scalp, and have net 0 positions, free of cash flow, while tweaking settings and finding good securities. Here's why I'm stuck. With my entire strategy I wonder what I could do next: 1) Market my fund to friends, relatives, take their capital to trade. 2) Market my automation to a Prop. Connect my system to their IB acct and do it frm home. 3) Sell my s/w to sell-side brokers, setup monthly subs $ 4) Start a webby, sell subscriptions to signals of my algos to retailers. 5)Get a job that requires Algo developers. (they are quite rewarding usually >$100k PA) This may sound stupid, for most retailer traders, but I need advice from good people. You know what I mean. Thks !
You either have something that works and you trade it yourself or you have something that looks like it works and sell the dream.
You want to be sure to sell the dream with gusto: BAD: "The SavageMP5 runs 5 algorithms, detects market movements, and does pretty well." AVERAGE: "The SavageMP5 Trading System: - Positions held no longer than 5 mins - No overnight positions - Scalable to any markets - Fully automated, hands off intraday trading" BETTER: "Is that $5K-$6K a year dividend income just not cutting it? The SavageMP5 Trading System may be the answer! Positions held no longer than 5 mins! No overnight positions! Scalable to any markets! Fully automated, hands off intraday trading!" BEST: "Just discovered! The master trading secret is finally revealed with SavageMP5's Magic Buy/Sell Profit Machine. We are not talking about guessing if price will go up or down. We are talking about a system that actually knows on which levels price will stop and suddenly reverse, and tells you when to enter and exit a trade. So, what is it...? My indicator watches what the market is doing in real time and generates signals to place a trade. When a signal is generated all you have to do is press BUY or SELL! That's it! No more thinking! Don't be scared!" * *I am not making this up: Google "magic buy sell" :eek:
Yes. With $50,000 I can only get access to $200,000 buying power. But my returns ? I'll still need more capital, and in this business more capital doesnt means more returns. Look at HFT firms and they have a higher limit. Thanks for your advise and reply. I think im on the right track!
I sometimes wonder if the "Failed traders come to ET" statemet is true. I would DARE say, with the use of IT and automation, I can automate most Prop trading activities. Anything that humans can do, computers can do it faster better. With the use of Buy side Algos like VWAP, TWAP to help HF, MF, and other block trading, there are ways to detect, with the help of reversing engr algorithms, to spot them. Anyway I love your marketing crap NoDoji
Ok i'll take the 3 replies as the general mass response. I now realize why good and smart ppl keep their stuff with them. That's as much as I coud share since most prop and HF need to sign agreement to STFU. I shall be lol! All the best ET traders !
The reason why you're stuck is b/c here's the Truth about trading: You're trying to covet someone else's trading account --- perhaps someone with less experience than u or in the wrong trade at the wrong time, which is what trading is all about. The last time I checked, "thou shall not covet thy neighbor's property [nor his trading account]" for it is a sin... Run quivck away from trading and the stock market and save your soul!