Proprietary Program

Discussion in 'Professional Trading' started by jellob, Jan 8, 2009.

  1. jellob


    I have written a program which looks profitable. Right now, I am talking with someone, a referral, about putting money to start an account. At first, I thought that it was a proprietary account for just me and him, but he actually wants to begin a fund trading my program.

    Problem #1: He wants to put me under payroll, implying that I will give up my ownership of the program, something I am hesitant to do. I do not mind him trading my program and keeping the profit, but I do not want him to turn around and sell the program to some one else. Is there some sort of arrangement in which I can maintain ownership?

    Problem #2: While I have not given him the entire code, I have told him the methodology. I am going to take a patent. Since I have proofs that I am the inventor and that I passed the program to him, I should have legal protection. Nonetheless, what is the likelihood that he will steal the idea and write the code himself?
  2. how old are you 5?

    you're very very funny.. patent?

    let me tel you something.. there is nothing on this earth that will protect you..

    i know people on bank prop desk that place fake random trades, take losses, split code between coders so no one knows what the strategy is.. thousands of dummy trades so it can't be reverse engineered either..

    u have no idea what you're talking about. you obviously have no idea what this industry is about.

    people get millions to join other teams not because their geniuses but they can share secrets..
  3. Tums


    if you can't make it with retail leverage, prop lev is not going to add any advantage to you.
  4. someone


    LOL :p :p :p

    you must be the most naive person here

    how old are you, serious question :)

    and you even explained to him methods LOL, I hope you believe in god

    only his imaginary love you will get in life
  5. slacker


    Remain independent and work for him as a contractor keep your method as a Trade Secret. If you do become an employee insist on an agreement that the intellectual property and derivative products are yours alone.

    A patent for a trading system does not offer a lot of benefits for the following reasons:

    1. 18 months after you file the final patent application the details of your patent become published for all to see. I could take everything in your patented trading system and trade it for myself without any problem as long as I do not sell it as a product.

    2. Trading systems are very hard to patent because there is very little new in the trading world. If challenged the prior art could be a real problem. I doubt you have done a complete search of past literature in this area. A patent has little value until it is tested in court and that takes a lot of money and years.

    3. Trading systems like other 'process' patents are harder and harder to get. Google patent + Bilski

    4. If you filed your final application tomorrow it will take 3 to 4 years before it reaches an examiner. That seems to be a long time and once again your idea gets published in 18 months which cannot be reversed.

    Suggestion: Trade it yourself - keep it as a 'trade secret', do not disclose details without an NDA. If it is valuable, then treat it as if it were.

    The only people who think patents are any help today are patent lawyers and people who know little about the subject (IMHO).

    Good trading.
  6. jellob


    You are the nastiest jackass -- worse than Batman.