Automated trading systems for Dax & EuroStoxx

[athhrlkb18]

Hi all,

Thanks for reading in the first place. Let me introduce myself.

I'm an active trader since 2002. I started trading (as most) on a discretionary maner. As time went by I figured out I wouldn't be able yo make any consistent money unless I designed, developed and totally automated some trading systems that really worked for me.

Thankfully al this has gone by and now I'm a well established system trader and renter. I primarily trade and rent my systems within Spain which is where I live. The time has come when an expansion to the US would help.

I'm approaching the forum cause, as you know, trading is a very solitaire business and I have no contacts to evaluate and eventually start this venture in the US. Therefore I'm looking for some help on finding good contacts that can help me to start renting my systems in the US.

Any help will be greatly appreciated.

Please forgive my horrible use of the english language. :-)

[Attaxargo]

Hello Horace, I watched your videos and enjoyed them. Thank you for your meticulous contribution, here and on your blog. I have a question, out of curiosity, but don't bother to answer if you feel it will be a waste of time. I am doing more or less what you are doing: since starting to trade in 1997, I have found out that discretionary trading didn't work for me, and have found out that automated trading works perfectly. The question is: why should I now go through the trouble of starting businesses, and selling things, when I can simply trade on my own, and most likely make more money and with less troubles? I keep on asking this same question to all those who trade profitably and still sell things and I do not mean that I don't believe you. I just want to know if there's something I am missing, that I should be doing, too. Because I am in the same situation as you and I don't see why I should work with anyone or sell anything I know. Are you doing this because you enjoy the field, or you feel the need to diversify your activities? Of course, I do understand writing on forums to "think out loud" while you're at home, but ultimately I would like to spend time away from my computer screen as much as possible, and maybe swim or watch movies rather than do things that will cause me to stay more at the computer. Otherwise why have I been doing all this? If I've been doing it is precisely to stop "working" and not to work even more.

[Aveleoau]

Well, I hope your spanish is better than my english. It must be since you view and understand my videos. 
Well, I think the answer to your question is pretty simple.
Trading is a VERY DIFFICULT business. As you sure know, all trading styles undergo drawdowns periodically. All of them.
The only way I know of to make this drawdowns smoother is diversification. The issue is in order for you to have a good diversified portfolio, you need money.
On the other side, you need to earn enough money to pay your mortgage, the school and whatever out of your trading account.
So in order to have a relatively fixed income from your trading account you need enough money to diversify it and make drawdowns smoother but without loosing the ability you generate cash for you to pay your invoices.
So the question is: Do you have that much money dedicated to trading? For most traders the answer is no.
Take my case for example. One of my best trading strategies (that has been profitable year over year since 1992) is undergoing a drawdown that is 8 month long for now. It has earned 300€ in a 25.000€ account. Can someone live on 300€ for 8 months. Not me. Renting this winning system I earn some money that enables me to live another month to get to the end of the drawdown.

[Augusttela]

My approach is renting the trading systems in a way that I’m not forced to make a business out of it. No website, no trading signals, no conferences, no webinars… only good known traders that want to test the system for their own. It’s more like a friends and family approach.
A hope I can soon get to the moment when my account reaches the level needed to trade solely and exclusively for my own.

[awidusauehewi]

Thanks for your thorough reply. I am from Italy, even though I spent a few years in Boston. Yes, my Spanish is good enough to understand your videos. Congratulations on the quality of your work.

About the drawdowns: I know. That is why I have built several trading systems, and plan on building more, at least until I manage to have all positive weeks.

About the capital needed: the things you said make sense. However, instead of spending time starting a business, one could dedicate that time to building more trading systems that will trade with the money one is not using, since you're not using your capital at all times. That's what I am trying to do. Actually, I am still working as an employee, so our situation is not the same.

I will contact you in private, with a proposal to swap trading systems. If we can develop some mutual trust - which is hard, because one may think one's system is better than the other's - I'll give you one of my systems, and you'll give me one of yours. In general, the way I see it, trading works best if it is kept a solitary experience, also in order to avoid arguments, that often happen when dealing with money. But I also have to say that if it weren't for three people who helped me in the past, I wouldn't have gotten this far.