If you must buy a trading system...

This is a discussion on If you must buy a trading system... within the General Trading Chat forums, part of the T2W Archive category; A suggested addition... You should also ask whether the vendor is registered with the relevant regulatory body in their jurisdiction. ...

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Old Mar 13, 2008, 10:51pm   #8
 
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A suggested addition...

You should also ask whether the vendor is registered with the relevant regulatory body in their jurisdiction. For example, here in the US trading system vendors are required to register with the Commodity Futures Trading Commission (CFTC) as a Commodity Trading Advisor (CTA) and notify the National Futures Association (NFA) of their status as a CFTC-registered non-member CTA. Any vendor who tells you that this is not required is misinformed or lying, and any vendor seeking to avoid legitimate registration has something to hide.

jj
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Old Mar 13, 2008, 11:48pm   #9
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Originally Posted by dbphoenix View Post
Those who would learn how to trade avoid developing their own strategies as if they were avoiding smallpox. Why?
How do people learn to drive a car?
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Old Mar 13, 2008, 11:51pm   #10
 
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Do they learn to drive a car by riding in a Taxi?
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Old Mar 13, 2008, 11:57pm   #11
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Do they learn to drive a car by riding in a Taxi?
No. The ones I know have learnt from someone else, usually in exchange of money.

But hey, what do I know?
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Old Mar 14, 2008, 12:34am   #12
 
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The point is that trading other peoples' systems will teach you about trading other peoples' systems (riding in taxis will make you good at riding in taxis). And that's just a tiny part of mastering trading just as riding in taxis is a tiny part of learning to drive (whether you paid to learn or achieved it by some other means).

On the other hand I think your post was a good analysis of "how to trade other people's systems" having personally buried over 50,000 in a black box before I gave up and started learning to trade.


Edit: And lets be fair: you did say "if you must" after all.

Last edited by nine; Mar 14, 2008 at 1:07am.
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Old Mar 14, 2008, 2:18am   #13
 
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As a trader, I definitely understand the resistance on the part of those who already are successful traders to using someone else's systems. The thing is, there are people who do not want to learn to daytrade and they have lots of good reasons. Often they want the diversification available to daytraders as most often daytraders are uncorrelated to pretty much everything yet understand that their time is more effectively spent doing what they do best (e.g. running their business or performing their full-time job). They also do not want to commit the relatively large amount of capital usually required to open a managed account with a successful daytrading CTA. For these people, trading someone else's systems through a managed systems broker makes a lot of sense and many folks do successfully accomplish their goals in this manner.

jj
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Old Mar 14, 2008, 2:30am   #14
 
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Originally Posted by Mathemagician View Post
For these people, trading someone else's systems through a managed systems broker makes a lot of sense and many folks do successfully accomplish their goals in this manner.

jj
A thoroughly objective reply from a managed systems broker
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