Learning profitable automated trading

This is a discussion on Learning profitable automated trading within the General Trading Chat forums, part of the Reception category; I was referring more to the "he's the best I know" and "he's willing to work for 80 euros an ...

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Old Sep 15, 2010, 1:27pm   #291
 
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Re: Learning profitable automated trading

I was referring more to the "he's the best I know" and "he's willing to work for 80 euros an hour"
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Old Sep 15, 2010, 5:26pm   #292
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Re: Learning profitable automated trading

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Originally Posted by oildaytrader View Post
Go out or get more out of buyer?

A good automated system making 40 % a year consistently is priceless to somebody with $1bn , and who is making 3 % on treasuries.He could make $370m more every year,over ten years it is worth $3.7bn.The software is worth $3.7 bn.
Wow, you're, like, really good at arithmetic.
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Old Sep 15, 2010, 7:40pm   #293
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Re: Learning profitable automated trading

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Originally Posted by oildaytrader View Post
The best automated system for forex is made up of 45 expert advisors .They work together as a portfolio of mechanical systems to survive most market conditions.They returned 25.6% from 2001 to 2006 , and 17.4 % from 2007 to 2010 ,after allowing slippage of 1 pip.This is based on $100k account and a drawdown of 10 %, by accepting higher risk of 20 % drawdown the profits can double to an average of 45 % per annum.It goes live again next month .On previous live runs ,it returned results similar to the above back tests.

The package survived the sterling crisis,the dollar crisis ,the euro crisis, the financial crisis and sovereign debt crisis.It is robust and of the highest quality.

It took 4 years and many rewrites and revamps of the entire system to complete, at a cost of $20,000 in programming fees,computers and expenses, plus the major cost of 10,000 man hours at $50 = $500,000 and the intellectual property coded of another $500,000,making a total cost of $1m.

It is not worth selling to little guys for $99 to $299,even Microsoft software costs more and does not generate income.
All credit to you, you've created some set of automated systems here, not sure why guys knock you for that...looks good.
Looks like a lot of effort, although as someone else said, $50 an hour is very cheap for a Software contractor, more like $100+ for the good guys, but hey he's completed it, although who's to say a $100/hour contractor couldn't have done it in 1/2 the time, and you'd have been up and running it making profit 2 years earlier...?
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Old Sep 15, 2010, 7:42pm   #294
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Re: Learning profitable automated trading

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Originally Posted by oildaytrader View Post
Go out or get more out of buyer?

A good automated system making 40 % a year consistently is priceless to somebody with $1bn , and who is making 3 % on treasuries.He could make $370m more every year,over ten years it is worth $3.7bn.The software is worth $3.7 bn.
$3.7 billion?? ROFL. Here's how I see it:

Let's pick an arbitrary account size and use your math. Suppose after having been a failed trader I only have $40 left in my account. at 3% treasuries I be making $1.20./year. But at 40% using your automated system I'd have $16.00/year. So doing the math then I'd have $14.80/year more with your automated system. Over 10 years the software is worth $148.00!!

So...why purchase software for $148.00 that takes 10 years to recover my investment? If I'd like to recover my investment in 6 months I'd pay $7.40 for the software (assuming it WORKS, of course).

I hope my math is right
I was never good at algabranometry(??)

Peter
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Old Sep 15, 2010, 8:39pm   #295
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Re: Learning profitable automated trading

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Originally Posted by meanreversion View Post
Wow, you're, like, really good at arithmetic.
Sorros couldn't offer the world an automated system that woiked on currencies, O D T could if he wanted to.
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Old Sep 16, 2010, 9:33am   #296
 
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Re: Learning profitable automated trading

No system is infallible. Just look at LTCM
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Old Sep 16, 2010, 9:52am   #297
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Re: Learning profitable automated trading

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No system is infallible. Just look at LTCM

Every system has weaknesses,it is for the developer to know the weakness and improve the system to deal with weaknesses.

LTCM is not a good comparison,firstly LTCM was poor risk management system ,the risk reward ratio of LTCM was bad.Every trade in our system has a stop loss , it is mechanical/automated without human interference.Our maximum risk is 0.5 % to 1 % on open positions and pending orders.LTCM were a bunch of cxunts of trading, they were risking the house on trading.
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Old Sep 16, 2010, 10:01am   #298
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Re: Learning profitable automated trading

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Originally Posted by oildaytrader View Post
Every system has weaknesses,it is for the developer to know the weakness and improve the system to deal with weaknesses.

LTCM is not a good comparison,firstly LTCM was poor risk management system ,the risk reward ratio of LTCM was bad.Every trade in our system has a stop loss , it is mechanical/automated without human interference.Our maximum risk is 0.5 % to 1 % on open positions and pending orders.LTCM were a bunch of cxunts of trading, they were risking the house on trading.
do you know what LTCM was?
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Old Sep 16, 2010, 10:15am   #299
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Re: Learning profitable automated trading

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do you know what LTCM was?

I do. http://en.wikipedia.org/wiki/Long-Te...tal_Management

Do you really know who they were and what they were doing?

They were just a bunch of cxunts like 2,000 failed hedge funds , in an industry which has not returned an overall profit for the last 20 years, after losses of last few years and all the little maddoffs who ran off with the money.
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Old Sep 16, 2010, 11:10am   #300
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Re: Learning profitable automated trading

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Originally Posted by oildaytrader View Post
I do. http://en.wikipedia.org/wiki/Long-Te...tal_Management

Do you really know who they were and what they were doing?
funnily enough I have met one of the board members of LTCM on a couple of occasions.
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