Question about selling a strategy

Discussion in 'Trading' started by TexasTeaTrader, Jul 15, 2014.

  1. ronblack

    ronblack

    Do you mean that the logic of your strategy does not use the OHLC of bars but only tick data? If this an HFT system?

    There are several backtesters that can do testing at a tick level. You can use R for that also. I do not discount in advance that your system works well. Probably it has some potential but most pros have many requirements for buying a system and these include how it correlates with their other systems, etc. One of my friends works for a hedge fund and they have 4 young guys running all day maybe 10 copies of adaptrade on liquid cooled i7 machines and about 40 copies of Price Action Lab on a private cloud, developing and testing maybe one or two sound strategies per week for commodity futures, forex pairs, ETF and indexes, domestic and international in various timeframes. They also sell systems for markets they do not trade to a few customers in some other hedge funds they work closely together. How can you compete with them? Each system they generate for in-house use or sell to a customer comes with a manual with complete statistics and validation results. I hope you get the idea.
     
    #21     Jul 16, 2014
  2. That's a bit outdated,
    It does support tick by tick analysis now with bar magnifier
    provided your data source have historical tick data.
    IQfeed provides historical tick data up to 6 months.

    PM me if you want any help in backtesting on tick data.
     
    #22     Jul 16, 2014
  3. Well, I'm a lone trader and I have SVM and Genetic algos running on 4 HP Blades
    connected to a SAN storage 24/7.

    And Price action Lab ? for real, I took one look at it and it looks like crappy
    VB or pascal code.
     
    #23     Jul 16, 2014
  4. Let me give you a little more detail on it. Its not high frequency but yes it wont run on OHLC of bars, tried it and it only executed 1 trade over a 7 year period. It needs level 1 at the minimum.

    This is how it executes a trade: basically it looks for a certain point & figure pattern, when 80% of the pattern is complete it enters a buystop or sell (depending on the direction) at the point where the signal would be 100% valid. If it doesnt fill the order in the current bar and a new bar is formed, then the trade is not executed and cancelled because the signal is no longer valid. Thats why OHLC wont work.
     
    #24     Jul 16, 2014
  5. Eyez

    Eyez

    I bid $0.01
     
    #25     Jul 16, 2014
  6. NoDoji

    NoDoji

    That's a bold statement :p

    The margin required to trade a single contract CL and NQ is so minimal with some brokers that I don't see why you don't just save a bit or borrow from a friend/family member the small amount needed to open an account with one of these brokers and run your system.

    Unless the potential drawdown of your system is significant. In which case I'm not sure too many people would be interested in buying such a system without a solid track record of audited live trading results.
     
    #26     Jul 16, 2014
  7. #27     Jul 16, 2014
  8. Yeah that's what Im going to do, doesn't look like i could sell it without showing 10 years of OLHC backtesting data
     
    #28     Jul 16, 2014
  9. kut2k2

    kut2k2

    Ron, I assure you that systems turned out by this mass-produced method (especially the ones they reject for themselves) are for shit. For a well-crafted homebrewed system, it's like comparing MREs to a gourmet dinner.
     
    #29     Jul 16, 2014
  10. Eyez

    Eyez


    Haha yea, ET'ers all about the easy money / do no work / show no value and demand to be paid. The individual who busted their ass for 3-months is now trading full-time. Go figure.

    If you're selling a system, chances are, it probably sucks. (just like the 'news app' which is just a RSS reader, and your forexmonster domain name). No one in their right mind sells a system that works consistently. I personally know traders who walked away from $MM deals because the firm wanted their intellectual property.

    Selling a system = red flag
     
    #30     Jul 16, 2014