systems to lease

Discussion in 'Strategy Development' started by youarefired, Nov 4, 2005.

  1. Was looking at YTD performance of a few systems that some brokers can autotrade for you and almost all of them showed either what I would consider rather mediocre results (given the drawdowns and the possibility the system will perform worse) or losses. Some had horrendous losses . Looking at the recent trades, one swing trading system went long NQ prematurely on October 10 just before it went down even lower then went short on 10/14 to close the trade on 10/25 !!
    I could never ever trade such a system! Wouldn't that be reason to throw that system away ? surely going short at the bottom means something is really wrong with the system.

    I think obviously this year has been difficult for almost everybody who was not heavy in the energy sector and I should not expect fantastic performance from any system but this really put me off trading systems offered by vendors and brokers. I understand systems used by leading CTA's are not so different in their design so how do some CTA's end up with those stellar returns?Surely being well capitalized and trading OPM must make a big difference.
     
  2. The Law of LARGE numbers. Out of a marathon, ONE winner is bound to emerge.
     
  3. Inside scoop...

    the BEST systems and developers never let their systems be offered widley to the public...

    In you serach did you find a system that costs... $750/month? Had its worst year last year with at NET of 53% AFTER ALL COSTS... fees included? Been run by a CTA since 1999 and offered through a discount broker?

    I have been aboard since 2001. And let me tell you if they ever submitted to Futures Truth... they would kick every single ones' ass in terms of risk vs rewards.

    The thing is the real good ones know that the more the merrier approach is not the best... The one I mentioned has been a capacity and only opens up 6 months out of the year I think. I have never seen a ad, or even a faint promo for them...

    Ask the brokers, actually probe them for there BEST... you may be surprised.
     
  4. Very true protrader.

    Why would somebody lease you a system making $20,000/day for $750/month?
    :confused:
     
  5. Thats 2% per day, ever consider compounding that.

    Wasnt aberration the big futures system touted for the longest time? I think it has an annual return of like 25%. Not that great.