How to find capital support for a stable profitable EA?

taoist

Junior member
16 1
I developed a profitable system.
I need to find capital to support it.

The basic performance is as below:
Max draw-down: 11%
Annual return: 100%
Base leverage: 1:3
Spread: 2.0 pips
Test data: 2007.1.1-2010.12.3
Capital serials chart is the attachment.


Can I find capital support with it?
Anybody can give me suggestion?
 

Attachments

HowardCohodas

Experienced member
1,868 97
Why are you willing to share the profits of such a system rather than trading it with your own money?
 

taoist

Junior member
16 1
Why are you willing to share the profits of such a system rather than trading it with your own money?
I am a new immigrant of Canada.
I have some small money to run it in venture mode.
But it is not enough.
So I'd like to find some larger money to run it.
 

HowardCohodas

Experienced member
1,868 97
I am a new immigrant of Canada.
I have some small money to run it in venture mode.
But it is not enough.
So I'd like to find some larger money to run it.
Fair enough.

Some things to consider
Back testing has it's limitation when compared to live trading. Investors will consider that and it may affect you split.

When moving from back testing to production (serious money) I go through two intermediate steps.
Paper Trading - Has its limitations as well
Preproduction - small money trading​

If you go through the intermediate steps and you are successful, you will have a larger bankroll. Your need for an investor is less. If you choose to go that route, your split will be better.

You could get lucky and find someone who does not follow my rules and invest in you at your current level of strategy validation.​

Good luck
 

Martinghoul

Senior member
2,690 276
Sorry, if this system trades FX, why not back-test it further than 2007? Furthermore, you have provide more info about the methodology, in order to for a prospective investor to conclude that you're not data-mining.
 

taoist

Junior member
16 1
Thanks! Your advice is quite valuable.
I am running some accounts of real money in leverage of 1:10.
As you suggested, I will add a paper account testing with leverage of 1:3.
 

taoist

Junior member
16 1
Sorry, if this system trades FX, why not back-test it further than 2007? Furthermore, you have provide more info about the methodology, in order to for a prospective investor to conclude that you're not data-mining.
The testing of data from 2001.1.1 to 2007.1.1 is as attached.
It is also profitable but not so efficient.
What kind of information will be necessary to prove it?

Thanks!
 

Attachments

Martinghoul

Senior member
2,690 276
The testing of data from 2001.1.1 to 2007.1.1 is as attached.
It is also profitable but not so efficient.
What kind of information will be necessary to prove it?

Thanks!
It's not a matter of proving it, as a backtest alone doesn't prove anything... You just have to answer a whole bunch of questions. Specific examples:
- How many trades a week/day/hour does the model do
- If the model pays the mkt, need to see performance of the model under different transaction costs regimes (as the model won't experience constant costs, if it's running at different times of day etc). If the model doesn't pay at mkt, but puts in bid/offers, you need to estimate the fill percentage and see how that varies.
- Specify which specific mkt the model is active in and, if it works in that mkt and not others, explain why
- If any parameters are calibrated, need to see what happens when you change the in-sample period. So need to see that the parameterization is stable

And that's for a start. You need to consider all these things also in the context of proper statistics.
 

Waterfield

Well-known member
252 75
Stick it on zulutrade and collective 2, get some subscribers.
 

taoist

Junior member
16 1
Stick it on zulutrade and collective 2, get some subscribers.
Yeah,that sounds a way of gain money. But it's too slow to accumulate subscribers. And actually I can control nothing in that way. I would prefer more to find and run capital myself.
 

wackypete2

Legendary member
10,215 2,048
Yeah,that sounds a way of gain money. But it's too slow to accumulate subscribers. And actually I can control nothing in that way. I would prefer more to find and run capital myself.
What you want, what you prefer, what you would like to do, etc... That's the easy part.
If you're just looking for someone to say, "here's $25 grand, go get 'em"...ain't gonna happen. Maybe building up your capital slowly but with some hard work would make you a bit more appreciative of it.

Just my 2 cents.

Peter
 

taoist

Junior member
16 1
My personal intention is to run a capital in larger size. Maybe the starting phase is hard.
The venture accounts trading in 1:10 leverage started from Nov. 23rd. The starting balance was 8061. The ending is 9020. It gains about 12% now.
So maybe what I need is just patience :)
 
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Waterfield

Well-known member
252 75
You can also get a PAMM account with brokers such as pfgbest, dukascopy, alpari etc. You'll just need to publicise it a bit so you get people signing up.
 

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