So I've "invented" an indicator

Discussion in 'Technical Analysis' started by hilojack, Apr 19, 2007.

  1. After tooling around with some different ideas, i came up with an indicator that I like to use in my trading. I have automated it, and it is applicable to many different securities. I have checked around, and I haven't seen anything else like it.

    My question is: what do I do now? Can I patent it? Or do I get a trademark? I suppose I could contact an intellectual property lawyer, but I hate dealing with those guys in general. For example, for bollinger bands to be called bollinger bands, what did he have to do?

  2. You can trademark it. You don't have to give it out though.

    Mark Cook's Cumulative Tick Indicator is trademarked, but no one except him knows how it works.
  3. Start trading it and documenting your trades...

    Give it a fancy name too like Hilojack Crossover or whatever. :D

    That's it.

    However, if you want to market the indicator...the trading it and documentation is in the right direction.

    A book or two couldn't hurt.

    Also, throw in a brokerage statement here and there to keep away the alley cats.

    The point is if you plan on marketing want leave a paper trail just in case someone else comes up with the same indicator and don't know you exist especially if they decide to market it.

  4. No patent. Sorry.

    Does anyone pay royalties to Bollinger for using his indicator? Don't think so.
  5. The best advice?

    Trade it and make a mint over the next couple'a years using appropriate risk management and position sizing (assuming the indicator actually works and gives you solid positive expectation).

    Good luck,

    Jimmy Jam
  6. My advice: If it is a really good indicator, then just use it. If not, then sell it as a "really good indicator" with sensational simulated results. A trademark on the name may give it some cachet to people who don't know any better. And don't worry about your soul. As a trading-related vendor, you're going to hell anyway.
  7. :D
  8. Thanks for the replies fellas. I do plan on trading it, not marketing it out. What I'd like to do is pick up some institutional money and run it as a fund. I've spoken with some money guys and they tell me they'd be interested if they could have apiece of it, provided it works as well as expected. The backtesting is off the charts, so even if it did a fraction of what the backtesting shows, it would produce double digits returns.

    Basically, I am trying to protect myself and my system. I've heard horror stories of guys getting their systems ripped off and then shown the door. I figured that by trademarking (patenting the process is apparently out per an above poster), would be a good start to protecting the work I've done, in addition to the ususal non-competes and disclosure documents.

    Any other thoughts and how to protect myself should I be fortuante enough to attract institutional money?

    Keep ur eyes open for Hilo's High-Lows, coming to data service provider near you!!! LOL
  9. OK

    You absolutely must speak to a good Lawyer.

    No two or three ways about. And unless one is plugged into this Forum, you aren't going to get the professional advice you need here.

    Otherwise we both (hell, we all) know what's going to happen (hint: time for the lube).

  10. How could you hope to "protect" an indicator once you have disclosed it? How could you possibly enforce such "protection" from "unauthorized" use once the indicator is in the hands of others? (And how would you prove "unauthorized" use?) The only way to "protect" an indicator that comes to mind, once it is in the hands of others, is via "black box." However, I can't imagine anyone in their right mind using a black box with real money.
    #10     Apr 19, 2007