Here's my story. I'm a trader who ducked away from the markets for about 3 years due to personal reasons and time constraints. But now I'm back and in order to get in tune with the markets, researched, backtested some ideas and in result developed a system. I discussed my system with a good friend, whom happens to be a broker(trader), and I began posting trades for him. He has become very interested in the system and wishes to trade my numbers with some of his clients money allotted towards this system. What do I charge for this? This system is not automated (cuz I know nothing abt that) and requires that I post the trades in real time. WHat do I charge for this? Should it be per trade, percentage of profit, so much per day, per month? I'm clueless in this regard as I have never paid for, participated in, or developed a system before. I wish to be fair, but do not wish to give it away as it required and requires a great deal of my time and effort. Any help would be appreciated. Thank you in advance
As one of my professors said "The first rule of business is "How much do you charge for your product?" and the answer is "As much as you can get!""
Correct, whatever the traffic will bear is the best rule of thumb, start off with an estimate of what it's worth and raise the prices until your revenue decreases, then lower them a tad... it's like small business, if you are getting every job you bid on then you are not charging enough. Look at collective2.com, people are running the charges anywhere from nearly free to capture of about half the profits......
Mine is up at $8,500,000 with 500+ days of history. Get the two year history with documented financial results, and you'll be good to charge a lot for it.
I've just put together a set of two indicators and had a few people try them out for a few weeks on paper. Once they go live I'll be receiving 10% of net proceeds from the indicator-based trades. About seven months of backtest done on 48 tickers.