Hi, I would need trading system for the Emini S&P, proven on a real money account. The system should have at least 0,5 points Average trade after commissions and slippage (for scalp systems) or better more than 1 bigpoint and a max. drawdown of less than 150 bigpoints. Best would be a max. drawdown period of no more than one month. I would like to either buy such a system or find a way of sharing knowledge or data (EUREX, FOREX, US-Futures, Stocks) for mutual benefit. I have developed some systems for the DAX Future. The system should be written for Tradestation. Please PM me.
Let's just go through this logically. StefanB is essentially asking to buy a money machine. If such things existed why would anyone work when they could just set up one of these winning systems? If such a system existed, why would anyone sell it and thereby reduce its effectiveness? Why not just keep it a secret and use it myself and keep all the money?
This is why: http://www.elitetrader.com/vb/showthread.php?s=&threadid=19286 Aspen's got it right. It's all about what you want to do as a trader since everyone has a different style.
You can slice it one way or another; rationalize this or that; in the end, its an adverse selection problem much like buying a car (determining whether is a lemon or not) A trading system on the market has to be VALUED correctly, a crappy one should go for a couple of bucks and a decent one should go in the thousands. The odds of buying a system for $25 and making a killing would be classified as dumb luck. A lemon if you will. (Example to illustrate a point) Thus in the best interest of the CONSUMER, either he or she does NOT buy a system or buy one that is very expensive ... This is proven by economic theory/empirical studies and a little thing I like to call common sense.
Aspen said this- "3. Since trading is a career just like any other, you need to be satisfied with your accomplishments and feel like you can contribute something. Just trading your own profitable systems is good, but some of us come from the background where we enjoy helping others to succeed. Do you think that a good basketball player who goes into coaching a youth league does it for the money? Why don't they just "play more basketball" and that will be good enough? There is a something to be said about positive feedback and the confirmation of someone saying "thanks, I'm glad that you were able to show me how to improve my trading"." I can't believe a professional trader actually believes this. Perhaps an actual trader could write this, but certainly he does not believe it. When I teach others to play basketball I am not changing the nature of the sport of basketball itself. I could teach a million kids to play basketball and the sport itself would be the same. When I get other people to trade my system, I am harming the effectiveness of my system. Why would a trader choose to sell his profitable system after a long career? BECAUSE IT NO LONGER WORKS!
If I had a system that really worked the way StephanB wants (and I didn't feel like trading), I'd sell it to institutions for $5,000- $10,000 a month. You'd never hear about it. I wouldn't write articles about it in futures mags and you'd never read a peep about it on ET. I'd have about 10 clients (but not more so as not to dilute the effectiveness of the system). I would not be asking Stephan to PM me about it. Think about what you might be getting for a $1,000 system you buy from a magazine. Its got to be a sure lemon.
There are plenty of systems out there that make money, and at the same time are managed properly as not to 'overload' the volume on trades executed. If you look further into how the system is developed and managed, you'll realize that there IS a lot of money being made by clients, as well as the developers - no matter how much or how little they charge.
I also don't ascribe to the theory if someone is willing to sell a system then it no longer works or never did, although there are many less than satisfactory systems out there. There are many talented people who are severely undercapitalized and relegated to making money in other ways besides trading. Perhaps relegated isn't even the best word as I'm sure they greatly enjoy what they do. Good trading.
No doubt, but you have to look at the CONSUMER side. LIke I said before, due to fraudulent claims and sheer number of systems available, for a typical consumer of these products it is in their best interest to buy the EXPENSIVE one. Adverse selection. Probability ... yada yada. Its like buying a cashflow car. You dont want hte lemon. How do you sort out the lemon? PRice
It's pretty easy for a real developer to establish trust. Just provide signals on a realtime basis and let the consumer pay monthly at 20% of cumulative profits until the system is paid for. If the consumer bails at any point they don't get the system and the developer isn't floating more copies than desired. Once the final payment is made, the consumer gets the system behind the calls. If the consumer isn't happy at any point they don't pay for the month and they no longer have access to the calls. Seems fair to both developer and consumer.