Hello system traders, Both being college professors (finance&engineering) we've had the luck of having spare time to develop an automated trading system based on simple TA, FA data and artificial intelligence (backpropagation & genetic algorithms for those who are in to this). We've backtested the system from 1998-2007 on daily, weekly, monthly US high volume stocks graphs with very nice returns. (min 35% and very low drawdowns. We've been through forward looking biases and other typical backtesting issues...) During the last year we've been doing this with real money via IB and had a 62,2% net return, so we might start saying it works in bull, bear and sideways markets. OUR QUESTION then: we'd like to rent out our system but how could we do this in a professional way. (not by sending out alerts via email: would'nt work BTW for our interactive system) We've already let a software company write a nice looking applet that connects to our servers and the system that distributes the signals: what? when? how many? ( money management: verrrry important) We've had the market research company iVOX conduct a survey and certainly, there's strong but small market for it where we live. (Belgium, Europe). But we'd like to go worldwide right away. Unfortunately we know traders might have a very hard time sticking to other people's system during a short drawdown. Oh yes, there's a lot of criticism on automated trading and even more on blackbox system renting. It is remains hard to explain what drives us to do this while we are successful. This idea is the result of what we call, our belief system. We believe anything positive we can ever give, weâll get back even more. Many traders have done it and are doing it today. In fact, when we started out back then we were lucky to get redirected immediately by an experienced trader (from this forum BTW) whom we met incidentally, or as we believe it, not incidentally. We are convinced that by renting out our system we will reach only those traders and investors that already share the same beliefs. Renting out the system is also just another way of making a living for us, entrepreneurs. About me: I've been trading for (only?: there's that belief system ) 4 years now. However I studied finance on university I learned a ton since then. I remember my first post here about four years ago under this name Since then I've been studying, reading numerous of classic trading books (Oz, Elder,Seykota, yes Tharp too) , programming, backtesting my strategies very intensively with Amibroker together with another very skilled programmer and trader. Ok, this might be a bit 'advertisingish': Soon our website will be online and and X number of 3 month trial accounts will be available as a promotion. PM me if you'd like to stay tuned.
any trader worth his salt, will not be interested, we can make hedge fund returns, only appealing to marginally profitable traders or wallstreet firms who need system based infrastructure b/c frankly great traders are few and not easily attainable!
Perhaps you can describe in a bit more detail what you do? How often you trade, how long you hold your positions, what your investment universe is (what instruments, what asset classes etc.), what kind of information the trades are based upon etc. Why would sending out email alerts not work for your system?
Hi all, thanks for your replies. Collective2 looks promising. I'll be posting more information about our system soon. Those who have emailed/will email me will be informed about our start. Thank you