I'm sitting on the 'Holy Grail' system - How can I fund this?

Sir M

Newbie
3 0
First: I'm not soliciting investors - rather seeking to get assistance in brainstorming the different ways I can get this business off the ground.

Second: I have 0 interest in going in to any revealing detail about my strategy, even in the highest level. As far as I'm concerned: I'm holding on to a billion dollar ticket and in this trading game, the value of a market advantage deteriorates rapidly if it becomes well known. I will discuss the success of the system a bit to explain why I am so anxious to get off the ground with this full time and so it's understood why even with (relatively) minimal capitalization, getting this going ASAP makes so much sense.

Third: I am not a rookie or a kid. I have studied the markets for over 10 years - traded Forex as an under-capitalized full time trader full time for part of it, and for the other part have been battling with the masses like everyone else while working a straight job.

Fourth: No, I am not joking - Everything contained within is 100% factual and again, I am no rookie.

NOW:

I have developed a 100% mechanical strategy (meaning, the signals are easily seen coming in advance, perfectly defined, and my favorite part - personal discretion is eliminated making back testing 100% legitimate. I don't care if every piece of news and technical analysis says to short the Euro, if this simple system says long - I do it with absolutely 0 regard for anything else) . This strategy is back testing absolutely unreal results; I have never seen anything like it.

The results: after THOUSANDS of trades, over several years, looking at most major currency pairs (and also looking at stocks and futures - I have yet to find an instrument that causes this system to fail but I will stick to FOREX as It's what I know): this system produces consistently greater than 83% win percentage. The losses are capped as a maximum of the win (meaning seeking a 100 pip profit, the maximum loss is 100 pips): but since most losses are actually smaller -the average loss is 65% the size of the winning trade target. Again: 83% wins where the wins are 154% larger than the losses, where the MAXIMUM loss is equal to ONE winning trade = you do the math. I have, and the result is effectively unlimited profits as a function only of what is invested. Trading any given currency pair in my testing resulted in an average of 750% annual return from approximately 100 trades per year (per instrument) and my desire is to trade 4-6 pairs simultaneously and target returns which will only serve to make this post seem even more outlandish to all.

FAQ: backtesting? Meh... tons of systems backtest well but don't work!
Answer: YES, but this system seeks gains large enough and with enough foresight that limit orders are easily used so entry and exit at or within pips of the targets is all but guaranteed. Also, this system is like I said, 100% mechanical meaning the biggest variable in backtesting is eliminated (the human element: errors, emotions, judgement calls, etc). I can say with 100% confidence that this system will trade EXACTLY as it backtests (this statement is no doubt very stinky to many of you as with what most know that isn't possible - it is with what I am doing). I can say with confidence that if this system were traded over the past 365 days, the result would have been +750% trading the EUR/USD alone on 115 trades. Add in additional currency pairs and you can begin to feel my excitement.

What you're describing isn't possible! You sound like a naive idiot. I agree. If myself of 2 months ago were to be reading this I'd think the same. It isn't possible with what I knew from 10+ years of playing in the market; but long story short - I've had a revelation and am staring at unlimited free money. No, not possible with the systems and charts probably everyone is staring at and I stared at for over a decade. I've shifted my entire mindset and the results are staggering.


I provide that back story so that my request is taken seriously. I am 100% committed to getting this off the ground ASAP. I am working full time but need to find the capital to get this off the ground so I can make these 300 trades a year and produce the 1000%+ return.
BACK TO THE POINT OF THIS THREAD::::

Where can a trader, like myself, who is sitting on absolute gold, go to get off the ground. Please help me evaluate the ideas currently in my head, and I'm hoping someone has a better one:

1)Rich friends. I have them. Rich people love nothing more than to invest in ideas like this and I'm 95% confident I can get more than enough money with fairly minimal effort through this avenue. The downsides: 1) they are friends, I don't like discussing finances with friends 2) since I would be managing their account, understandably, the majority of the profits would need to go to them 3) I hate convincing people of things. Ideally, I find a way to finance this thing on my own accord. The idea of having to talk someone into 'investing' in me is wholly unappealing to me. Nonetheless, this remains a possibility and as I consider the alternatives, it may be the most realistic.

2)Piece it together from my own finances. Tax return coming in, I have some home equity, my brokerage takes $5k per month credit card deposits, 401k, etc. I could probably piece together about 50k which is enough clearly with the 750% returns to make a living but ultimately that isn't a lot of money and being undercapatalized in such a way would adversely affect my risk:reward tolerance making 750% alot less likely. This is a possibility, but I don't like it. If i could piece together 100k I'd feel alot better about this option. 50k just feels a little tight, even with the gold I'm sitting on.

3)slow and steady wins the race. Take a piece of #2, say 10k and over the course of 2 years turn it into 100k by trading in the evenings and on the weekends. This is my absolute last resort: a) that is an incredible amount of patience when again, I'm sitting on solid gold. and b) I've done the full time trading + full time working game for years - it's a hellish workload that is a drain unlike what I want to experience again. If I'm going to be trading for 50 hours a week, that's my job. I've got a family and I've put them through enough Full time job + full time trader for one lifetime. So, while this remains a viable last resort option, it is definitely 'last resort'.

WHAT ELSE IS THERE?
Prop Shops - I know very little about these but could this be the answer I'm looking for?

Banks - maybe not a traditional bank like US Bank or BOA, but are there any financial institutions that might be something I should look into?

Private funding - (again, not soliciting here), is there any organizations I should look into which fund ventures like this with private equity?

Anything else I am not considering?
 

Sir M

Newbie
3 0
Wow - sorry guys, I type fast and that thread really got away from me. Feel free to skip to the bolded question 2/3 of the way down since it's not until then that I get to the point. Brevity is an art I have not mastered...
 

DionysusToast

Legendary member
5,963 1,501
Trade it live for 6 months, then the world will be your oyster in terms of finding funding.

Not with big money - but with real money in real time.
 

VielGeld

Experienced member
1,421 179
Ok, whoa, calm down first! :LOL:

If you are indeed sitting on a gold mine, I would first suggest testing it out over an extended period of time to see if it really is the gold mine you think it is. Prove it does, indeed, work, before investing anything more than what you have already.

If you are genuinely seeing the sky-high returns you think the strategy provides, then you may be interested in starting up your own fund and soliciting outside investment. Get a track record, and the money will pour in.

Regardless, I strongly suggest giving yourself time to really test if this thing works. Calm down, and think clearly. You have more time than you think.
 

darktone

Veteren member
4,016 1,084
If you youre aiming to return 750% from 100-150 trades per year per year via system signals and limit orders, then surely that wouldnt need much in the way of screen time? Just get the signal and pump in the orders. Should have very little impact on the job/family time.

Things you may not have considered:-
i) Have you considered where youve had problems in past trading?
ii) If they are psychological issues (highly likely) have you considered how this will affect your performance executing your system?
iii) Have you considered how clean your data was used to back test? More so if youre using hard stops?

-----------------------------------------------

Imo, trade it yourself stay away from OPM, especially from friends. Be servant to no-one. 75k from 10k in one year, dont sound bad. What you waiting for?
 
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L

Liquid validity

0 0
Couple of things I'd add.

Firstly the returns look like its relatively high frequency.
Do those backtested returns take into account the following:

1. Missed limit fills.
2. Slippage on wider disaster market stops.
3. Spreads - earn or pay?
4. Commissions.
5. Tech issues - server downtime, hardware / software issues.
6. Connection latency and fill speed.
7. Hardware costs - co-location servers etc.
8. Tight stops - is account leverage an issue (less than 10x, 5x better)?
9. Realistic drawdown levels?
10. Decent sharpe, sortino & calmar ratios?
11. Test data quality - high freq needs quality tick data.

If its relatively high frequency, and the above points haven't been accounted for
that will seriously dent the live returns, or even wipe them out and then some.

Assuming the above points check out, when you do start live testing,
I'd go with SIM only for 3 months to iron out any oversights.
Then lowest possible size for another 3, then build a drawdown cushion and hit it with
decent size (compound if you can - may not be possible due to high freq liquidity).

Hopefully Random might pop into this thread as he knows his
onions with this stuff.

On another note, you would do better with 2 years decent size live returns (even better audited).
I've not tried this, and personally I'm a bit sceptical, but it may be worth you looking into:
https://www.topsteptrader.com/

Having said that, if the 11 points I raised earlier are accounted for,
then finding funding won't be a problem.
Thats with the proviso that you have the required record and can withstand
much tougher questions than I've just fielded.
 
Last edited:
M

member275544

0 0
1) Remortgage everything that you have
2) max out on credit cards
3) sell all your possessions
4) pimp out wife/girlfriend
5) pimp out children (probably get better rate than mrs)
6) steal
7) ransom demands on your in-laws
8) Beg
9) try selling the system to raise some cash
10) fake your own death and claim on insurance

you've got the holy grail for f*** sake, be imaginitive :whistling
 
Last edited by a moderator:
L

Liquid validity

0 0
1) Remortgage everything that you have
2) max out on credit cards
3) sell all your possessions
4) pimp out wife/girlfriend
5) pimp out children (probably get better rate than mrs)
6) steal
7) ransom demands on your in-laws
8) Beg
and lastly
9) try selling the system to raise some cash

you've got the holy grail for f*** sake, be imaginitive :whistling

Your list is much better than my list :LOL:
Class :cool:
 
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Hoggums

Senior member
2,176 878
1:1 R/R and 83% success. I simply don't believe it. Especially on Forex.

either this is a synical attempt to solicit funds or you have a completely unrealistic back test.
 
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L

Liquid validity

0 0
1:1 R/R and 83% success. I simply don't believe it. Especially on Forex.

either this is a synical attempt to solicit funds or you have a completely unrealistic back test.

Fair and valid point.
I'm just suspending disbelief for now as he hasn't made any vendor moves yet
and only asked a question.

Personally, atm I'm just taking it at face value, but most likely the back test is flawed.
Time will tell.
 

wackypete2

Legendary member
10,229 2,055
I saw the system :) ... Valid :) ... If tomorrow's close is up, buy today's close ... If tomorrow's close is down, sell today's close ... the 83% is due to a wrong angle looking at the crystal ball ;-) Good Luck evreybody ... holy grail ... again? :)

ROFL. I had to read that twice to get it.

I'm slow today :eek:

Peter
 

Billy Gates

Active member
161 14
Take a piece of #2, say 10k and over the course of 2 years turn it into 100k by trading in the evenings and on the weekends. This is my absolute last resort: a) that is an incredible amount of patience when again, I'm sitting on solid gold. and b) I've done the full time trading + full time working game for years - it's a hellish workload that is a drain unlike what I want to experience again. If I'm going to be trading for 50 hours a week, that's my job. I've got a family and I've put them through enough Full time job + full time trader for one lifetime. So, while this remains a viable last resort option, it is definitely 'last resort'.

[/B]


Firstly you can't trade weekends as markets are closed.;)

Secondly you say a purely mechanical system, but not automated. How have you back-tested it ?

If you have programmed it into a bot or something then I assume you can run it live in the same way. So your problem of sitting in front of the screens is eliminated.

If its still manual then your options are still limited until you get a live track record.

Best way forward is to trade it yourself, get some real results and see if its as good as you as you say.

From your post I gather the wins are quite large, and so can that one loss be. Trading and sitting through that one loss in real-time with real money will give you another perspective and maybe a cause to reevaluate part of it.
 
 
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