Do not sell it or patent it. Market it as a news letter or signal subscription service. Look into collective2 and then once finessed sell the signals on your own subscription website. Once your subscription service is set up, find something else to occupy your time or you will end up tinkering with the system and destroying it.
Realpissed, I think your advise in right on and once you have something that works you need to have some clerks or systems brokers trade or monitor the system or you will tweak it to death trying to find the "Best" parameters. I just spent 2 years working on a Index System and have spent 4 months tweaking and have only made showed a slightly smother curve.....Anyway turn on the bot and let it do its thing. Gook luck Hilo
In the period 2001-2004, when I was working on T/A, I have created lots of original indicators. They were all released for free and are available to any user. Some of them are included in T/A software packages. Many traders all around the world use them at their own risk of course. What I know is that, someday, my name will ba included in the T/A historical developement. Until now, there is no such work.
=================== Interesting comments; and in an Active Trader magazine interview John Bollinger mentioned OBV, with Bollinger bands. And once on Bloomberg or CNBC he showed a chart of SPX, multiyear uptrend, no Bollinger Bands or OBV; called it a trading range. Probably did help Granville, inventing OBV; dont think he ever got any royalties also.
Well if there is a trading system behind it, and it sounds like there is, then wouldn't you want to deal with it as a proprietary method of a hedge fund or smth. For example, many quality high end funds, trading groups and even prop desk have their own proprietary secret methods. They can only protect them with silence and a vow to secrecy. They may be using proprietary indicators created by them or specialized quant models. For all you know, you did not invent anything new, but are using it in a certain way. Someone may create the same indicator but have different results. Seems like what you should do is simply trade it, make money and keep it a proprietary secret system. Once big enough, release the special indicator or whatever and get paid 6 figs to "advise" once a week.
Make your own fortune first with your system, then write the book to share it with the world and you will make another fortune again with that. If you have such a winning system you shouldnt worry about how to protect it and market it. you should self absorb yourself in your system, and make money, why waste your time talking about protecting it. you seem a little to concerned about things somebody who has such a great system would be conserned with Helping people out and sharing it with the world will make you richer than anything else you could imagine.
Hi Hilojack, Contrary to what others may have told you, it is possible to patent aspects of an indicator. One of the reasons that Bollinger Bands or something like it was not patented is that in the eighties when it was created, patent law didn't allow for it. While it is still not possible in the US to patent an indicator per se (as a mere algorithm), it is possible to patent a practical implementation of the algorithm, particularly a computer based implementation, ie software. At the time when Bollinger Bands were 'invented' (and nearly all other publicly known indicators) it was not possible to patent computer software. But times have changed and now it is. It is now also possible to patent just the algorithm in Australia (who seem to be the most liberal in their patent law) as long as the variables of the algorithm relate to real things (such as stock prices). However as has already been pointed out to you, patenting your indicator will require public disclosure of it (within 18 months of filing your patent). Also you are limited in how you use it before you apply for a patent. If you use your system commercially before you file, your patent could later be invalidated (if someone can prove you used it), although in the US you have a 'grace period' in which you can still file (most other countries do not). Using it for experimental purposes usually won't invalidate it though. If you really do want a patent you can most likely get one if your indicator truly is new invention, just go talk to your local patent attorney. However in practical terms if you did get patent protection, the monopoly provided would only apply to software implementations of your indicator that you know about. You would be able to take infringement actions or demand royalties from software vendors who wanted to include your indicator in whatever they're selling. But of course surely you would only want to disclose and sell your indicator publicly if it didn't work (or perhaps no longer worked), in which case why would anyone want to pay royalties for it?
sell it by proxy..........you continue to trade it while having a staff member(s)to sell it as a timer, online.........you get two incomes, one direct from its employ and a passive one............never sell it directly, never disclose code, always laugh, you're definately going to hell.............you could also do sub stores where you onsell the indicator to folks who onsell its use again...........yeah, definately going to see the man with the spikey tail..........
I quite agree with you KT. Some observations hilojack. Firstly, now you have a winning indicator, you are 20% into your journey of making a fortune. Congratulations. Secondly, TM's and patents are as good as your ability to protect them. You will neeed good Attorneys in India, China, SE Asia, and naturally central and latin America. My suggestion would be to talk with MS and the music/film industry to see how much to set aside for annual legal fees.