By - JustaddReddit
If you are new to this arena, prepare to get scammed. If you don’t know how to assess an algo then you will be shown some absolutely beautiful returns - and you’ll pay a lot for it - but it won’t work the same when you try.
Alternatively if you really do know how to assess algos, the only people who have something worth buying either won’t sell or will ask for what the algo is actually worth, which you won’t likely be able to pay…
Algos are a business and if you want to buy them you’ll have to treat it like buying a business. Minimum 4x FCF plus partial lost opportunity cost. Geometric returns make big numbers.
Best of luck.
I appreciate your honesty. We will want to test the algo first before I/we pay for it. Demonstrable proof is everything and we aren’t new to this. We are hoping to have several algos with which to test. Again, we trade snipes/scalps/swings on mostly long ETF’s. We aren’t limited in our scope. Every successful algo has it’s place.
>I understand that this forum is used for help, improvement, and direction but what happens to the algos that reliably work ?
If an algo reliably work, why would some one sell it, rather than using the algo to make money? They can make millions/multi-millions out of it !
Most algo's that people can make don't have an astronomical edge, maybe a few percentage points higher than just holding SPY. If they don't have that much initial capital, it's still going to take a long time to make millions from it. Licencing an algo (rather than selling) in some situations can be a viable exit plan for algo trading hobbyists once they have a profitable algo.
For the simple fact that unless the algo’s creator has enough share size to negatively affect a stock/ETF’s behavior then why not ? The creator can use the algo along with us.
Yah, you never got something to "test". If there's a reputable seller, that's the best you can hope for. But honestly, it might actually be cheaper to pay someone to develop one for you then buy a good one. And then you have on going support, and can pivot the algo to what you need.
I have an algo. Im interested to sell. Its big oh is very small. My portfolio reached $15000 in 2 days. The only issue is , i started with $58000.
QuantConnect sells algos but you need a lot of capital to put in those. What asset do you want to trade? Do you have a minimum time frame you want the bot to trade on? Minimum win rate? Maximum drawdown you are comfortable with? What Sharpe, Sortino, Calmar ratio are you looking for? Ann. return? Do you want signals? Or something that actually places trades for you?
We have the capital and are looking for new talent, new ideas, new relationships. We want new ideas, new perspectives, fresh drive to excel. The market is dynamic. A new direction, perspective, hunger equals success.
Bruh are you like 18 or smthin...
Bruh, I’m 6.
We snipe, scalp, swing stocks and ETF’s. Mostly leveraged. We are also open to paying to have talent create an algo with our parameters. Lmk if you’re interested in talking about it.
if an algo is good enough to buy, it is too good to sell
You answered your own question but to what end ?
Trying to buy an algo is the easiest way to get scammed. Making a strategy publicly available essentially kills any edge that it may have had. If it worked, they’d exploit it themselves.
I've algo-trade for a living for years, and even I have trouble evaluating, re-evaluating, and position-sizing systems that I tediously created myself.
Historical profitability is a red herring. I could sell you three different systems right now that I could honestly say have made me $100,000+ each. Here's the problem: they no longer work.
You're going to get your money taken with nothing to show for it.
There are trade following platforms https://trade.collective2.com/
I read some. Interesting to say the least. We, like them, want the algo protected as well as the creator.
Buy low, sell high.
That will be $1 million please.
You forgot the important part. You get a 50% commission on all the wins. I own 100% of the losses.
Do you have an idea for a system?
I could try to put it into code.
I've got an algo I'll give away for free lol.
It scalps GLD/GDX spread. It made me $450 over the past year and it operates with about $10k of capital, giving it less return than the S&P.
If you want to optimize it, it's all yours lol
If the draw down is low enough, you could just lever up
What happened to building your own algo?
What makes you think a person who has one that works would ever sell it to others?
What kinda asset holding time, trade frequency, and operating capital are you looking for...?
Which market? Do you have execution, risk management etc already built? An algo is a part of a system.