Would you sell your proprietary strategies?

Discussion in 'Strategy Building' started by formikatrading, Feb 6, 2004.

  1. I'm often amazed by how many trading services there are. If you have/had proprietary strategies, would you sell them?
  2. only after its no longer profitable...
  3. I find so many people sell their services because so many people are searching for the holy grail. But many of these services are average, at best.

  4. bone

    bone ET Sponsor

    Average would be generous.
  5. Or if that strategy may not work for other traders. For example, a trader who can successfully trade off a filter could give that filter code to 10 other traders, and still its very possible for all 10 of those traders to lose money from trading off this filter.
  6. What I find disturbing is that some of these services promote various proprietary set-ups with sexy names which are just as easily seen using some simple indicators.

  7. gms


    I should be selling my proprietary indicators, but I'm giving them away free, right now, right here:

    1. The ET Sentiment Oscillator. A contrarian indicator.

    calculate: "Markets Topping" type posts / "Markets Bottoming" type Posts.

    If < 1 then Sell, if >= 1 then Buy.

    2. Market phase indicators:

    a. New mr.market "Another winner" post = Up-trending market ;

    b. Above average number of harrytrader posts = market is range bound;

    c. gordon gekko posts announcing his continued success = Reverse or close all positions immediately! Extreme market turn coming.

  8. Yes

    And I wouldn't be worried whether or not they no longer work. The notion that one can invalidate a strategy has truth to it, however, in order to literally undo a strategy requires money, size and determined effort.

    Say that you like to hammer a stock and pummel it down using bullets, especially on a down day for that stock. Imagine now that you explain how your software specializes in giving you the edge in tying into the NYSE SuperDot system and electronically posting and executing your order before it is interrupted by the specialist. Imagine now, that strategy and method are explained. What would it take to disrupt its usefulness going forward?

    it would take any of these answers, yet all of these scenarios take huge money positions:
    1) thousands of traders all going opposite to that hammering. In this case, buying a falling stock on every lower price, thus making it intolerable to hold shorts

    2) turning off the NYSE SuperDot on those stocks. This means finding these stocks that are randomly chosen to be targets of the hammering techniques.

    3) having some large hedge fund commit millions of dollars to take the opposite side of the trade, hence destroying the anticipated initial outcomes.

    Acutally Business Week's article on Steve Cohen exposed such a hedge fund technique, yet what was most interesting was how much money had to be used just to take advantage of perceived inequities in the marketplace.

    They say investing is a game of chance, averages, percentages and so forth. They also say hiding in plain sight works best most times.

    Well, hide your strategies in plain sight knowing that the variables necessary to fully exploit them are in the hands of very few.
  9. CalTrader

    CalTrader Guest

    99.99 percent of all such proprietary strategies are known and obvious. The truly valuable proprietary strategies are not discussed anywhere.
  10. sure, i would sell my proprietary strategy. HOWEVER, the price would need to be right.

    #10     Feb 7, 2004