Is this auto trading system good enough for sale?

Discussion in 'Automated Trading' started by cwu8918, Oct 30, 2010.

  1. cwu8918


    I've developed a system for fully auto trading E-mini futures. Here are the backtest results for the last 15 months.

    Trade one contract for each symbol, and no positions overnight

    ES: 07/20/2009 - 10/29/2010
    Trades: 883
    Net Profit: 53119
    Max DD: 2068
    Profit Factor: 2.03
    Kelly: 27
    PI: 7.72

    NQ: 07/20/2009 - 10/29/2010
    Trades: 1302
    Net Profit: 44322
    Max DD: 1209
    Profit Factor: 1.76
    Kelly: 21
    PI: 7.31

    YM: 07/20/2009 - 10/29/2010
    Trades: 1132
    Net Profit: 40107
    Max DD: 2313
    Profit Factor: 1.7
    Kelly: 22
    PI: 6.47

    Is this auto trading system good enough for sale? And how can I sell this auto trading system to fund my trading capital quickly?

  2. vikana

    vikana Moderator

    Those numbers are good enough that you should borrow 20k and trade one of each of ES/NQ/YM. You can pay back the loan in less than a year and have ample capital to continue.

    Why in the world would you sell something that good?

    You'll own the world in a few years!
  3. Backtesting is only the first step of a four step qualification process. You need to learn the limitations of backtesting and perform the additional steps necessary if you want to ethically represent this as a successful system.

    The second essential ingredient of monetizing a successful system is marketing. Study that as well.

    I wish you well in your enterprise.
  4. Nexen


    The vast majority of this crap, read 99.99% is curve fitted to no tomorrow.

    On top of that 1st post so you get the idea.
  5. to sell a system you should generate

    - 95% profitable trades
    - profit factor minimum 3
    - at least 2 trades per day
    - drawdowns less than 8 ES points

    and ask no more than $19.95 for your system.

    only to realize that each person who is "interested" will endlessly tell you how systems are all about curve fitting and are all crap- only manual trading can win.

    give yourself a luxury and trade your system with your own money against the delusional masses.
  6. Ash1972


    I hope you're being sarcastic. This is a disaster waiting to happen. This system is clearly over optimised and will almost certainly lose money in real trading. Can the developer answer the following questions?

    1. What slippage cost have you factored in per round trip?
    2. What sort of results do you get using various *other* 15 month periods from the past? e.g. Jan 01 2000 to Mar 31 2001?

    BTW there are some very good systems out there that DO make money, but developing them is not easy.
  7. Ash1972


    No, no, NO! That's an immediate red flag. It's usually the worst systems ever that have a high proportion of winning trades.
  8. vikana

    vikana Moderator

    Actually not - I was not being sarcastic. If the developer believes in his systems and they stats are that good, he/she should be willing to put it in play and risk some money.

    Why would the OP want to sell something that good?
  9. Assumes facts not in evidence. I hope you don't trade the same way.

  10. this is precisely why most people would like to buy them (if the cost is below 20 bucks of course). because the majority always makes the worst choices.
    #10     Oct 30, 2010