Is this auto trading system good enough for sale?

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

  1. How about posting your results for the live trading?

    BTW, doubling down may be a good bet in blackjack, but never in trading. You NEVER know why a drawdown will commence and increasing your bets during one can wipe you out.
     
    #61     Dec 7, 2010
  2. I asked Matthew about the refunds from subscribers of consistently profitable systems. He said the number is inconsequential and subs are more than happy to pay for results, but that doesn't prevent them from requesting a refund and getting it.

    The fly in the ointment with the C2 business model is not only the payment method, i.e., credit cards, but what it is "selling." Technically, to not run afoul with the regulators, subscribers are buying "information." What they do with that information is of no concern to C2. Of course, this is a cover story because the only reason to subscribe to a C2 system is to trade the signals to make a profit. Period, end of discussion.

    The whole chargeback issue would dissappear if PayPal, not credit cards, were used. As far as I know, PayPal will not issue refunds for services.
     
    #62     Dec 7, 2010
  3. Clarification, using PayPal and a merchant providing refunds are independent things. A merchant is free to refund payments made through PayPal the same as with a credit card. PayPal, just like other credit card processors, wants the merchant and customer to work it out, but will issue a charge-back/Buyer Protection if they feel that it is warranted.

    Myself, I have tried to garner subscribers for a trading system for years. Without that first person, (developer himself), being willing to stake you, it is hard to get anyone to take you seriously. I can tell you all about the excuses one hears, but basically, people are afraid of losing their money and they are afraid of being left out on a good thing.

    There are too many systems being touted on very short trading systems which are assumed to be over fitted. People don't trust back testing.
     
    #63     Dec 13, 2010
  4. Oh, and I should add: the problem of over fitting don't just apply to back testing. Ever seen a long table of systems, with short forward histories, sorted by performance? Why would anyone go to the second page, if they can get a system with 3000% return on drawdown?
    In my mind, this falls under the heading of over-fitting. Reaching a sense of confidence by looking at a biased set of data where the bias is enforcing your confidence.

    Every wonder why that are so many more Mutual Funds than stocks with institutional-grade volume? Someone is always going to be at the top of the list each month. The more chances that a Fund Family owes, the more often the family wins.
     
    #64     Dec 13, 2010
  5. cwu8918

    cwu8918

    Here is the backtest results from my NQ automatic trade system now:
    from Jul 20, 2009 - Nov 21, 2014 ( total 64 months):
    Trades: 4614
    Net Profit: 146349
    Max DD: 5042
    Profit Factor: 1.51

    upload_2014-11-23_22-34-13.png

    For the past 4 years, I've been using this system to do forward test every day, and still don't have enough money to do the real trading for long period. As some people suggested, I did put my system in C2, but there was big connectivity issue, there were a lot of trading signals not being received by C2, including those closing position signals before the market end. It left some positions overnight that was not acceptable.

    So after 4 years, my question is same: Is this auto trading system good enough for sale? And how can I sell this auto trading system to fund my trading capital quickly?

    Thanks.
     
    #65     Nov 24, 2014
  6. Sergio77

    Sergio77

    If you are not doing any forward looking then it is good. But the equity curve points to some forward looking aspect. If not, great!
     
    #66     Nov 24, 2014
  7. Well, the basic rules of system selling is simple: anything you can't make money with is good enough to sell. Anything you can make money with is good enough to keep.

    As you are unable to make money with this after 4 years, this is definitely a good system to sell like hot cakes. To sell the systems, run you system in demo and double the demo money every couple of weeks.
     
    #67     Nov 24, 2014
  8. RedDuke

    RedDuke

    Hi Cwu8918,

    How much capital does the system require to trade ES for example? Did you do any live trading with it?

    Regards,
    redduke
     
    #68     Nov 24, 2014
  9. cwu8918

    cwu8918

    It depends on the broker's margin requirements. e.g. for IB, trading one contract requires:
    ES GLOBEX:
    Intraday Initial - $2,875,
    Intraday Maintenance - $2,300
    Overnight Initial - $5,750
    Overnight Maintenance - $4,600

    NQ GLOBEX:
    Intraday Initial - $2,250,
    Intraday Maintenance - $1,800
    Overnight Initial - $4,500
    Overnight Maintenance - $3,600

    YM ECBOT:
    Intraday Initial - $2,437.5,
    Intraday Maintenance - $1,950
    Overnight Initial - $4,875
    Overnight Maintenance - $3,900

    You can find those information at https://www.interactivebrokers.com/en/?f=margin&p=fut

    I did some live tradings 4 years ago, but haven't do it since my real account dropt below the minimum requirements. For the last 4 years I was focus on the forward test and backtest of my NQ system.
     
    #69     Nov 25, 2014
  10. francis1

    francis1 ET Sponsor

    The reason why C2 waits 45 days before paying out is because the credit card companies are painful to deal with: they will process chargebacks up to 90 days or more after a charge is made. Chargebacks occur whenever a client contests a charge. Since no physical product was shipped, the client usually wins. It has nothing to do with litigation protection, it's just how the credit card industry works. We feel waiting 45 days is a fair compromise for system developers because if you were to do your own credit card processing, you would get worse terms than C2 offers.

    As for C2 management Autotrading system for free, this is simply not the case: I've always paid the same fee as any client whenever I personally Autotraded systems on C2.
     
    #70     Nov 25, 2014