Is creating professional investment software a good business idea?

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Old Jun 12, 2011, 2:49pm   #1
Joined Jun 2011
Is creating professional investment software a good business idea?

So...i am a software developer and thinking on some catching software idea that will sell well. I am considering to create a software that can for instance: Calculate SABR volatility, calculate black-scholes, calculate fx options kholagen model, predict prices based on neural networks, calculate var, sortino ratio, sharpe ratio, follows progress of your portfolio. Anyway...the idea is this to be like a swiss knife for the professional investor. Do you think it will sell? Like...in that economy and given that most mentioned things can already be found free in google. Also, i have about $60k put aside to invest in such venture and planning a price about $500 per one year license. 10x!
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Old Jun 12, 2011, 3:02pm   #2
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Re: Is creating professional investment software a good business idea?

So have you given up in the idea of opening an offshore bank for the time being or will you run both projects?

http://www.trade2win.com/boards/foye...ml#post1584110
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Old Jun 12, 2011, 3:07pm   #3
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Re: Is creating professional investment software a good business idea?

kevpries started this thread
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So have you given up in the idea of opening an offshore bank for the time being or will you run both projects?

http://www.trade2win.com/boards/foye...ml#post1584110
I have about 15 other ideas so to speak...just researching the market imo.
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Old Jun 12, 2011, 3:12pm   #4
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Re: Is creating professional investment software a good business idea?

I see. Have you considered setting up a company to train prospective traders? You don't need to know anything about trading, just pretend you are a stock Market veteran of 20 years and you know the secrets the pros use.
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Old Jun 12, 2011, 3:14pm   #5
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Re: Is creating professional investment software a good business idea?

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I see. Have you considered setting up a company to train prospective traders? You don't need to know anything about trading, just pretend you are a stock Market veteran of 20 years and you know the secrets the pros use.
Ok, sign me up already.
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Old Jun 12, 2011, 3:21pm   #6
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Re: Is creating professional investment software a good business idea?

kevpries started this thread
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I see. Have you considered setting up a company to train prospective traders? You don't need to know anything about trading, just pretend you are a stock Market veteran of 20 years and you know the secrets the pros use.
Heh good point... .
I can even write a book "how I made $2,000,000 trading frozen orange juice futures...and then lost all" - speaking of which the last part of the sentence is never mentioned in this type of books.
Seriously though, I don't think too many people buy into this type of thing - there are obviously newbies out there but competition is fierce and most people are sceptical. I will be called a ponzi 9 out of 10 times and if I sell the "system" it will be for about $50 i guess. Let alone that it will be totally immoral..well.
On a side note, personal finance software is the best selling type of software on amazon - i guess the pro equivallent isn't so popular, but one can specuate with the price then...given that you target hedge fund managers, quants, investors with experience, etc.
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Old Jun 12, 2011, 3:59pm   #7
 
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Re: Is creating professional investment software a good business idea?

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Originally Posted by kevpries View Post
predict prices based on neural networks
Really??????

This is just one of the pies you have your fingers in?
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Old Jun 12, 2011, 4:19pm   #8
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Re: Is creating professional investment software a good business idea?

kevpries started this thread
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Originally Posted by DionysusToast View Post
Really??????

This is just one of the pies you have your fingers in?
that's why we're talking about selling here and not "selling things that always work".
Cheers Dionysus.
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Old Jun 12, 2011, 4:25pm   #9
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Re: Is creating professional investment software a good business idea?

Damn, it seems the software thing has already been done.

http://www.cracked.com/article_16648...ll-for_p2.html
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Old Jun 12, 2011, 6:34pm   #10
 
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Re: Is creating professional investment software a good business idea?

Have you considered trading? I heard that it can be quite rewarding.

Seriously though - you appear to be working backwards from the amount you have to invest and the amount you want to charge per year.

I picked out 'predict prices based on neural networks' because that alone, even if possible, would suck your $60k out of you. Not only that but the idea that you'd lease such a thing for $500/year is a tad bizarre.

You need an idea in my opinion. There are a lot of niche software companies in NY doing software for funds etc. I have spoken to guys at one of them, the range of stuff they do is vast. I designed a simple application for a hedge fund for them to write - just bringing information together in a unique way based on how they operate. This application is unique but the amount of people I have spoken to that would be able to make use of it is... errr... just the guys at this fund.

You need to find an area of pain, where there is an unfulfilled requirement and enough customers to achieve the financial goals you set. Bundling together a bunch of algorithms PLUS a neural net is a shotgun approach.

Do some research - find a niche and implememt it. Don't post the idea up on a pubic forum if you do have a good one or someone with more money and resources will have it released before you've finished saying 'rent a coder'.
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