Buying a profitable system

[Pat494]

I would be interested and I am sure many others too about buying a profitable trading system. This may look like a cop-out by the do-it-yourself purists but at the end of the day this business is about making money and I see no reason not to spend money to make money. So what system would you recommend for:-

a) Under $1,000
b)Under $5,000
c)Under $10.000
d) Over $10.000

 

[new_trader]

I always assumed you were a profitable trader. This thread is a surprise.

 

[shadowninja]

I see no reason not to spend money to make money

Me neither, but saying it doesn't guarantee the system will work. Some in financial circles say that if there really was a system that could be sold, the banks would have bought it for millions. I mean, if you wrote a program that could automatically trade and could provide a year's worth of account statements, wouldn't you sell it to an investment bank for a few million?

 

[forker]

Not a chance. Why publicise it at all. If you had such a system, you effectively have a money tap into an almost endless supply of money. I say keep it quiet and enjoy the rewards.

 

[Pipsaholic]

Pat I would prefer to develop my own system according to my own personality. The most successful people in this game when interviewed all stated they invented their own system to fit their needs and ideas. Markets evolve over time and they are various types of traders and systems out there that may be against the way you’re thinking. I tried to look for a system as well I found out I like that what he/she uses but I don't like that I think it’s too risky especially as a new person to the field where they may have more financial backing and can go more aggressive. It's all about risk and money management and executing your system properly and every person is different these people who sell systems are more financially stable and can afford 5-10% risk of your account where newbies its best to stick between 1-3% In the end you can go ahead and purchase a system and it may work out for you everyone has a different experience however your system is likely to evolve as you increase or decrease your account balance. Just my 2 cents.

 

[Lightning McQueen]

I would be interested and I am sure many others too about buying a profitable trading system. This may look like a cop-out by the do-it-yourself purists but at the end of the day this business is about making money and I see no reason not to spend money to make money. So what system would you recommend for:-

a) Under $1,000
b)Under $5,000
c)Under $10.000
d) Over $10.000

the freely available systems are quite good, why spend money with the charlatans. most of the generally marketed systems are based on the freebies i would have thought.

seek out robin hood thread on t2w that one's interesting, simple and free.

or have a look at the trading made simple thread over at ff, i'm having good demo success with it, though it needs a bit of learning on your part http://www.forexfactory.com/showthread.php?t=291622

 

[bbmac]

Whatever system/methodology/edge you use and howsoever required, as your tactical trading approach is only half the strory. The necessary psychological sklkills required to ensure it delivers to you- the user of it, a consistent reliable gain probably cannot be taught/bought and are acquired over time (or not.)

Developing yor own system/methodology/edge at least ensures that it suits your particular and personal preferences/tolerances/personaility type over a bought one that may not be. You also ensure that it is at least in theory (notwithstanding the above) profitable over any given sample.

I do tend to agree with another poster that (although everything is for sale,) a profitable trading edge probably will not be priced in the price price ranges the OP outlined in his first post.

G/L

 

[glyder]

I've met some people who write programmes for banks / brokers, it seems that none can write programmes that work in all conditions. I spoke with one the other day he writes arb trading programmes between primary and derivatives markets, the profit factor is minute, so it needs huge sums to play with to make it worthwhile, plus significant IT resources to run - advantages only the institutions have.
None of the developers I have spoken to ever trade for their own account or wanted to go solo. Its all about making money from the institutions/ customers money and not risking your own. Just as it always is in the city.
Given that these have a tough enough time of it with all their resources and ability to constantly tweak their programmes, I'd be very sceptical of any systems for sale on the web.

 

[0007]

I would be interested and I am sure many others too about buying a profitable trading system. This may look like a cop-out by the do-it-yourself purists but at the end of the day this business is about making money and I see no reason not to spend money to make money. So what system would you recommend for:-

a) Under $1,000
b)Under $5,000
c)Under $10.000
d) Over $10.000

I can't answer your question specifically but a few thoughts:

1. What has system price got to do with it? What evidence is there that a more expensive system is any better than a cheap or free one?

2. I like your idea of spending money to make money-- nothing wrong in that, isn't that why we all trade? -- But the evidence seems to be that there are loads of con men selling systems. If it's "black box" you've got no idea what goes on inside and therefore you're trading blind. Could be okay but for how long?

3. If I was to spend money on a system I think I would spend it with somebody who would train me in his methodology -- but I would need to be convinced that he is a capable trader and trainer.

4. The relatively small amount of money I have spent on "systems" has been on the writings of traders whose ability and methodologies appeal to me and who are able to explain it all logically and with data evidence. Two authors in this respect and whose work has been incredibly helpful to me are: Hurst and Millard. I suppose in a way I have "purchased" their systems and used them in conjunction with conventional TA.

So yes, I don't have any problem in principle with purchasing a system so long as you know what you're doing and what the system is likely to do. Whether that is any easier or more effective than developing your own system, who's to say?

 

[15 min tlb]

I would be interested and I am sure many others too about buying a profitable trading system. This may look like a cop-out by the do-it-yourself purists but at the end of the day this business is about making money and I see no reason not to spend money to make money. So what system would you recommend for:-

a) Under $1,000
b)Under $5,000
c)Under $10.000
d) Over $10.000

I could offer you free systems which work and have draw downs , but the psychology is where most systems fail. You can't buy psychology.

 

[Pi3141]

Dont waste your time and money buying ready made systems on the web, instead use the money to pay programmers to code your own systems. They're about 150-200 USD each so you could get a few programs coded for under 1k.

 

[Pat494]

Interesting thoughts above to ponder.

This must be one of the few areas of work left that have the lure of great riches and opportunities for anyone, even those with no qualifications. But as in any endeavour only a few get rich from trading.

No systems offer any guarantees that I know of. And it could take a long time to find a right path to profits let alone mountains of dosh, even for the able.

The MT4 championship may be about the nearest to such a system. I will check it out.

 

[bedsit]

or have a look at the trading made simple thread over at ff, i'm having good demo success with it, though it needs a bit of learning on your part http://www.forexfactory.com/showthread.php?t=291622

There are lot of views (over 1,000,000) and the thread started in April. In my spare time (while waiting for various set ups), I tried it (not with the real money). It's a funny system. As I understood the designer of the system advises entry at the first DTI cross on the 1st or the 2nd HA candle latest. Well - it crosses, then if you don't wait for 4 hours for a candle to close it may go back, HA colour may change etc. All this on 4 hours candles and his advise on the stop is - it should be at the extreme of the last 1 to 2 4 hour candles. And then he says he doesn't want more than 20-30 pips loss - as I understood. To me that's a fantasy. Also if you look at few examples, they are explanations like: you see here is a ranging market etc. Don't you love it?- hindsight analysis. Also there are some charts where some crosses were marked, but some of them missed (you guessed it - missed ones are failed signals) Anyway the followers are happy, so let them enjoy it.

About the profitable system - Trying not to be cynical, but why should anybody who has a profitable system try to sell it. Much easier for them to use it and continue making millions without diminishing their edge.

 

[BeginnerJoe]

Give it up before you lose more. Also switching to stock buying on fundamental factors is easier and safer. If you get it wrong, the time is on your side.

A general rule about systems is that anything that involves spending $100 to make $2 million won't work. On the other hand, anything involves spending $2 million to make $100 usually works.

To be successful in the market, you really must to be able to see beyond the surface. Essentially, the institutions on the other side of your trades are there to make money from you. It is not possible for you to beat them over the long run. If you flow with them while they victimize someone else, you might succeed.

It all comes down to: can you escape the supposed 'truth' you have been fed by the financial industry and repeated ad-infinitum on these kind of forums, and be able to see what is really happening ?

 

[brettus]

Interesting thoughts above to ponder.

This must be one of the few areas of work left that have the lure of great riches and opportunities for anyone, even those with no qualifications. But as in any endeavour only a few get rich from trading.

No systems offer any guarantees that I know of. And it could take a long time to find a right path to profits let alone mountains of dosh, even for the able.

The MT4 championship may be about the nearest to such a system. I will check it out.

There are a few signal providers i have been recommended. One of them i did sign up for taught me price action and support and resistence somewhat. The signals were successful and not mechanical.

 

[charliechan]

as shodowninja pointed out - try and put a figure on how much a system would be worth and when you get close to the answer, you are close to realising the futility of the question.

ive several friends who work for high freq trading firms these days. their algo's are updated several times EACH DAY to keep in tune with current conditions.

in other words, even if you were to get a system, it wont last forever (aka turtles method) and will you know how to make further iterations to keep in with current market context.

no such thing as easy money here.

 

[neil]

You are using false logic: "spend money to make money" refers to the world of business where you make/buy items for sale such as shoes, buildings, tools etc. It does not apply to situations where you take no risk or make no effort apart to from sitting on your butt giving money to someone who would rather give you winning trade ideas rather than make himself a billionaire. Wise up ffs

 

[runningdeer]

I would be interested and I am sure many others too about buying a profitable trading system. This may look like a cop-out by the do-it-yourself purists but at the end of the day this business is about making money and I see no reason not to spend money to make money. So what system would you recommend for:-

a) Under $1,000
b)Under $5,000
c)Under $10.000
d) Over $10.000

With so many Legendary Members having already replied I shall try to add my twopence worth with some humility. I assume that any trader not using a paid for system is in fact trading their own system. I mean they have a plan. "If I see this happening, I will do this". Some I'm sure will be unique. The majority perhaps slight variations on set ups that have been traded forever. A paid for system is just somebody else's idea of what will be profitable. Except they've decided to make additional cash selling it.

Whilst I can't answer your question I like the fact that it gets asked. After all, it's really no different than asking a successful trader if he / she would let you into their trading plan. I imagine we all have at least some curiosity of how other traders make money. Perhaps some of those are paid for systems.

 

[BeginnerJoe]

I pay the market, and it's beginning to give me a system.

 

[safvan]

Another thread. Another short cut seeker.

Short cuts short cuts short cuts...lead to financial disasters.