Your trading edge/logic's security

Discussion in 'Prop Firms' started by calhawk01, Mar 19, 2013.

  1. Hi, any trading managers here from prop firms that would like to talk about the security of a trader's edge/logic? For example, if a trader is consistently profitable, what are the odds that the trading manager will eventually start mirroring the trader's trades without asking for permission? What about programmers working at these firms that help the traders automate the trading strategies?
  2. None? Really? I'm sure if I create a post about "LOOKING FOR A PROP FIRM" i'll get 30 replies from different companies. You guys are lurking around..
  3. All you can really do to protect against a broker or anyone else accessing your strategy is to have a non-disclosure agreement with the broker that is pretty solid and can protect you if you find out they did use your strategy; however, there's no way to "keep it a secret" from anyone.

    In my opinion, there's no such thing as a secretive strategy which yields such high returns that retail brokers have never seen anything like it. If it does yield great results, it's likely only a matter of time before the SEC shuts it down.

    You don't have much protection against theft of your strategy unless you open your own proprietary trading firm and broker-dealer. In that case, nobody aside from the SEC and your SRO will have access.
  4. Thanks Oddtrader, I've read those threads. But I'm looking for a reply from a trading manager from one of these prop trading firms to answer my questions. I'm curious to know if this question is being asked to them or if they have any way to protect their trader's trading logic

    Evo- that is a good idea to have a disclosure agreement signed, I can't imagine any other way around it. It's same as having an idea for a website/app and you're meeting up with a complete stranger off craigslist and explaining to them the entire idea and then have them code it. Make sure you have them sign a disclosure agreement!
  5. kent


    I am a trader as well as a trading system developer/programmer. I have developed/tested quite a few trading systems in MQL4.

    I was asked to develop a mirroring system from a platform to send/copy trades to another system. Though I could develop such a product (either alone or with the help of few friends in industry), I didnot take up that. I felt it will be used to mirror the trades without the knowledge of the trader.

    This was asked by a hedge fund manager. And once you are successful trader, there is always a possibility to mirror ur trades. And if you trade long term, they can easily copy/mirror trades without giving you the bigger account and its related fees to you. Though an agreement sounds good but it will be difficult to prove/enforce if both parties are living in distant places/countries/laws.
  6. gmst


    Can you give more details please like -

    when this happened?
    how did you get in touch with the hedge fund manager? Most of the hedge fund managers I know off don't talk to MQL4 programmers. They talk to people who can write code in C++, python, Matlab etc.

    Fyi, it might just have been that the guy wanted to send trade details from his execution system to his risk management system. Just saying.

    Also, I do not know of any hedge fund manager who uses MQL4. Maybe the guy was just managing his and his friends money maybe his AUM would be in the range of 100-500k. Just saying.
  7. kent


    You dont like MQL4 Programmers? :) j/k.
    I did check on that hf manager. He seems to be managing large fund where he allocates accounts to various traders. The project involved writing that stuff in C++ or C# api. And the platform is not MT4. He was not asking for sending the info to other system, and he mentioned mirroring trades in real time.
  8. What's unusual about it? Hedge fund managers are known for dirty playing, including insider trading. Brokers are known for front-running.
  9. Any trading managers at prop firms that want to tackle the question?? Come on guys.
    #10     Mar 22, 2013