Stolen strategy!

[Harrystyles]

Hi all,

Not 100% I'm posting in right section here but I'll get straight to the point:

Without going into too many details I've got a strong suspicion that the prop firm whom I trade with have figured out my strategy and distributed it to some other traders (who they back).

1. Anyone else experienced anything similar to this?!
2. Is there ANYTHING I can do about this (fairly sure I know the answer but ANY advice on action I could possibly take would be great - I worked damn hard on that strategy for it to just be nabbed!)
3. Any ideas on how I can protect myself from this in the future?

Kind Regards,

Harry.

 

[Lightning McQueen]

I wouldn't worry none harry. it's your strategy, you put the hard work in on it so know how it works and if and when there are any market changes you and you alone will be able to adapt, the other chumps will be left high and dry. just carry on with it and keep things closer to your chest in future.

 

[counter_violent]

Hi all,

Not 100% I'm posting in right section here but I'll get straight to the point:

Without going into too many details I've got a strong suspicion that the prop firm whom I trade with have figured out my strategy and distributed it to some other traders (who they back).

1. Anyone else experienced anything similar to this?!
2. Is there ANYTHING I can do about this (fairly sure I know the answer but ANY advice on action I could possibly take would be great - I worked damn hard on that strategy for it to just be nabbed!)
3. Any ideas on how I can protect myself from this in the future?

Kind Regards,

Harry.

Is this an automated strategy or manually traded ?

 

[Harrystyles]

Is this an automated strategy or manually traded ?

I manually trade it but it's a mechanical rule-based strategy

 

[counter_violent]

I manually trade it but it's a mechanical rule-based strategy

I'm guessing that your risk managers were only doing what they are paid to do which is go over everyone's trades to check performance. Maybe the pattern is easily discernible once numerous examples have been studied. Lets face it, if they like what they see, then for sure they are going to get others to trade in a similar way. It's all about the money !

Have you spoken to other traders who you suspect are trading your system? There is a chance they don't even know it's your system.

 

[Harrystyles]

I'm guessing that your risk managers were only doing what they are paid to do which is go over everyone's trades to check performance. Maybe the pattern is easily discernible once numerous examples have been studied. Lets face it, if they like what they see, then for sure they are going to get others to trade in a similar way. It's all about the money !

Have you spoken to other traders who you suspect are trading your system? There is a chance they don't even know it's your system.

I think you've hit the nail on the head counter violent. The risk managers get slice of the overall office performance so unfortunately are highly incentivised to propagate anything half decent. Haven't spoken to any other traders yet as I don't want to draw ANY more unnecessary attention to my strategy!

Not sure what to do as I worked real hard on that one & I'm already seeing deminished returns because of the extra volume in the market got one or two further ideas but massively disincentivised to implement them in case they get nabbed again!

 

[counter_violent]

I think you've hit the nail on the head counter violent. The risk managers get slice of the overall office performance so unfortunately are highly incentivised to propagate anything half decent. Haven't spoken to any other traders yet as I don't want to draw ANY more unnecessary attention to my strategy!

Not sure what to do as I worked real hard on that one & I'm already seeing deminished returns because of the extra volume in the market got one or two further ideas but massively disincentivised to implement them in case they get nabbed again!

Well I'm not sure if you need the job and their facilities, but the alternative assuming you have a verifiable audited track record, might be to seek alternative backing or if you have enough working capital, scale down and go it alone.

 

[Lightning McQueen]

I think you've hit the nail on the head counter violent. The risk managers get slice of the overall office performance so unfortunately are highly incentivised to propagate anything half decent. Haven't spoken to any other traders yet as I don't want to draw ANY more unnecessary attention to my strategy!

Not sure what to do as I worked real hard on that one & I'm already seeing deminished returns because of the extra volume in the market got one or two further ideas but massively disincentivised to implement them in case they get nabbed again!

if you are seeing diminished returns then it must surely follow the others are seeing a similar result. you must adapt, if indeed they're following you then surely you know what they're going to do, so change, formulate accordingly and take their money. a man of your calibre should be able to figure it out.

 

[Forexmospherian]

Not sure what to do as I worked real hard on that one & I'm already seeing deminished returns because of the extra volume in the market got one or two further ideas but massively disincentivised to implement them in case they get nabbed again!

Hi Harry

Just out of interest - what market was it being used on ? and what type of volume was you using ??

Cheers


F

 

[itspossible]

You are not hatching something are you Arry

 

[tagpole]

Hey harry, can you PLEASE email me your SECRET strategy ...so I can sell it to Mr VinceSLIMBALLzione for a quick £500,000 CASH

 

[Harrystyles]

Hi Harry

Just out of interest - what market was it being used on ? and what type of volume was you using ??

Cheers


F

It can be used on any market so long as the signals exist (I've probably traded circa 20 markets with it this year) clip is risk based so on more volatile/high tick value markets size is decreased but generally between 50 & 100 lot clip, occasionally more.

 

[neil]

slowly, slowly catchee monkey

You are not hatching something are you Arry

I was thinking along the same lines

If you had a sure fire rip snorting way to make money then why trade in a prop shop? Why not go it alone? And I am sure you are not writing in the hope that people might pm you to bid for your "system" and I am probably being cynical thinking that this could be a build up to a sales pitch. After all, it's nearly Christmas and people really believe in good will to all men :innocent:

 

[counter_violent]

It can be used on any market so long as the signals exist (I've probably traded circa 20 markets with it this year) clip is risk based so on more volatile/high tick value markets size is decreased but generally between 50 & 100 lot clip, occasionally more.

I suppose it's true that an edge can erode if it becomes widely known but given that you have traded it across a wide selection of instruments leads me to think that changes in the markets in general are at play.
It's also possible that algo's have picked up on the trade signature left in the markets and are busying themselves watching for activity.

Interesting thread.

 

[Harrystyles]

Well I'm not sure if you need the job and their facilities, but the alternative assuming you have a verifiable audited track record, might be to seek alternative backing or if you have enough working capital, scale down and go it alone.

Unfortunately pretty much all my trading is high-volume so I'm a bit limited in where I can trade as I need real low rt costs. Anyone know of any prop firms which may be able to offer this (although it may be a big assumption that I wouldn't have the same problem elsewhere?!)?

Alternative backing sounds interesting although (embarrassingly ) I'm not sure what you mean by an 'audited' track record exactly? Verified by an accountant?!

Many thanks for the help so far guys.

 

[Harrystyles]

I was thinking along the same lines

If you had a sure fire rip snorting way to make money then why trade in a prop shop? Why not go it alone? And I am sure you are not writing in the hope that people might pm you to bid for your "system" and I am probably being cynical thinking that this could be a build up to a sales pitch. After all, it's nearly Christmas and people really believe in good will to all men :innocent:

You cynical lot! Haha

No I'm not selling my system.... However since we're on the subject you can check out my new book now on amazon 'get rich quick with Harry' & look out for my upcoming seminars of the same name

 

[neil]

You cynical lot! Haha

No I'm not selling my system.... However since we're on the subject you can check out my new book now on amazon 'get rich quick with Harry' & look out for my upcoming seminars of the same name

Will do Harry, thanks for the tip
Merry Christmas

 

[counter_violent]

Unfortunately pretty much all my trading is high-volume so I'm a bit limited in where I can trade as I need real low rt costs. Anyone know of any prop firms which may be able to offer this (although it may be a big assumption that I wouldn't have the same problem elsewhere?!)?

Alternative backing sounds interesting although (embarrassingly ) I'm not sure what you mean by an 'audited' track record exactly? Verified by an accountant?!

Many thanks for the help so far guys.

Well, google is your best friend

https://www.google.co.uk/?gws_rd=ssl#q=Financial+backing+for+traders

http://marketsci.wordpress.com/2008/08/07/if-it’s-not-audited-it-doesn’t-count/

 

[Harrystyles]

Cheers guys.

For those self-backed prop traders out there; would being self-backed prevent the office rIsk-managers from going through my trades? I.e. If I'm not trading the prop-firms money can they still legitimately go through my orderbook/trades to 'check my risk?'

I'm damn sure 'ethical considerations' won't stop them!

 

[rawrschach]

you would still be on the same risk system and they would still see everything as you can lose more than you deposit and that would obviously affect them.

you could approach kyte and clear with them/trade from home and see if you get the same problem. If you're high volume check the rates US brokers can offer and see if they can match what you get.