I'm trying to build up enough money to trade properly and have a few ideas which i think could create a potentially good system. so what? if i want to create one for say tradestation (not mt4 as people would torrent/copy it too much) how much would it cost? and physically....how do i go about selling it? create a website? is there some website which you posts back/forward tests and then offer it out?
any help would be appreciated
Monetizing a successful system can be very rewarding, however it requires preparation and hard work. In order not to be considered a scammer, you will need to develop credible proof.
Regarding proof, this list, posted elsewhere as well, should help your thinking.
- Back testing, like any computer simulation of the real world (think engineering) has its limitations. Even with tick data, you can't assume the trades you want to make will be executed in a timely fashion or at the price you want.
- Once your computer simulation shows promise, you should go to paper trading. Paper trading, like an engineering prototype, is good for working out the bugs of interfacing with the real world. Even paper trading has it's compromises. Although you will be filled at the price you request if the market trades at that level, no consideration is given to availability.
- Your next step is to trade live (with money) but for small amounts. Consider this preproduction testing.
- Now you are ready for full production.
The Internet has proven to be a valuable tool for both marketing and delivery of information. It is certainly my favorite method.
You have several choice for monetizing your system.
- Selling the system
- Selling the indicators
- Providing ETC (Education, Training and Coaching)
Providing ETC is my personal favorite. In the US there are several gurus provide the education and training in seminars. These are expensive to produce and expensive for the students. ($2,000 to $6,000) Coaching is frequently delivered in person for $10,00 to $50,000.
I prefer delivering ETC over the internet using tools such tools as
GoToMeeting. Cost of production and delivery are far less than live seminars and prices to students are consequentially more reasonable. Education and training at around $200 for several weekly 1-2 hour classes seem to be the norm. For the US, $200 is the sweet spot where a student can make the buy decision without asking anyone else. At the end of the education and training sessions a pitch is made for coaching. Group coaching goes for $2,000 to $3,000 for several weekly 1-2 hour sessions. Private coaching goes for around $1,000 per hour. There are lots of combinations and permutations, but hopefully you get the idea.
If your marketing skills are lacking, consider joint ventures. This is a very popular way to get people interested in your product.
You have an interesting challenge ahead, but with will and focus you will succeed.
Live long and prosper.
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