|
PureBytes Links
Trading Reference Links
|
Your point is clear enough.
Good luck !!
Dimitris Tsokakis
--- In amibroker@xxxxxxxxxxxxxxx, fujeira@xxxx wrote:
> There are some subtle points that most people who are in the
business of
> making money with other people's money are not aware of.
>
> Information in the money business is price inelastic, i.e. you do
not sell
> more by lowering price. Knowledge is what drives the money making
business.
> Knowledge per se has no physical borders, barrier to entry. A money
manager who
> has $10,000,000 to invest in can take the same strategy that a
manager who has
> $1,000 to invest in and both can apply the same strategy
successfully. The
> $10MM manager makes 10% just as the $1000 manager. The $10MM
manager makes
> $1,000,000 and the $1000 manager makes $100. Both made the same
return using the same
> strategy, yet one is $999,900 better off than the other. With such
a spread
> between the two managers, the money manager with more money can pay
more in
> absolute dollars for the information than the one who has less
money.
>
> And if you are the one who has the strategy, I would think you
would want to
> offer it to the bigger money manager.
>
> This being the case, why try to sell proprietary information to
those who can
> pay a small amount when you can sell to those who will pay more? In
this
> case, also, the requisite cost to convince a bunch of little money
managers the
> strategy works when you can pitch one huge fish out there that he
would be
> better off, would be too high.
>
> So, the need to keep the trading algorithms secret doesn't fall
into a neat
> supply/demand formula. It's more like an all-or-none dynamic.
>
> The idea of trading the secret code for oneself also begs the
obvious
> question: how can you make millions with it when you only have
thousands to trade
> with? No money manager alive, or even dead, ever made it with only
his own money.
> They've always applied leverage to maximize their absolute dollar
returns by
> bringing in investors. Templeton, Soros, Dennis, even Livermore
when he was
> broke and had to borrow money from his broker to get started
again ... time and
> time again.
>
> The fallacy with your thinking is as follows. Just because you have
a
> successful strategy doesn't mean that you will make millions or
billions. You must
> have a successful strategy AND millions at your disposal to make
the millions or
> the billions. This is the reason why you and millions of people in
the world
> trade the liquid markets to make millions more. ALL OTHER
BUSINESSES HAVE
> THEIR NATURAL BARRIERS AND LIMITATIONS TO THE AMOUNT OF MONEY YOU
CAN MAKE. If you
> were to create a factory to make a product you will find that your
> limitations to the amount of products you can make are there: the
factory is not big
> enough, there isn't enough raw materials, etc., etc. The
limitations to liquid
> tradeable markets are much higher. One phone call to your broker
and you can
> make a trade for 100 shares. One phone call to the same broker and
you can make a
> trade for 1,000,000 shares. There is no natural barrier to making
money in
> the markets. The only barrier is ... the amount of capital you have
to make the
> trades ... and that is all. (Note I did not say to make a
SUCCESSFUL trade,
> but just to make a trade .... the successful trade part comes in
with the
> strategy that one can develope using Tradestation and manage to
keep it secret.)
>
> Just my two cents of rambling thoughts.
>
> ******************************************
>
>
>
> In a message dated 8/11/2003 5:17:04 PM Central Daylight Time,
> TSOKAKIS@xxxx writes:
>
> > Subj: [amibroker] Re: Saving AFL with proprietary coding?
> > Date: 8/11/2003 5:17:04 PM Central Daylight Time
> > From: TSOKAKIS@xxxx
> > Reply-to: <A
HREF="mailto:amibroker@xxxxxxxxxxxxxxx";>amibroker@xxxxxxxxxxxxxxx</A>
> > To: <A
HREF="mailto:amibroker@xxxxxxxxxxxxxxx";>amibroker@xxxxxxxxxxxxxxx</A>
> > Sent from the Internet
> >
> >
> >
> > But, the other, who will copy it infinitely and probably sell it,
he
> > will sell an open code.
> > Sales need more talents than a hidden code.
> > Perhaps it is better to trade the "golden" code.
> > You can make more money this way and you will not disturb the
> > hackers, they will apply their talent somewhere else.
> > Just some thoughts...
> > Dimitris Tsokakis
> > --- In amibroker@xxxxxxxxxxxxxxx, fujeira@xxxx wrote:
> > >
> > >I would like to develop special proprietary coding using AFL
files
> > for
> > >Amibroker and make it so that no one can see the code. I can
sell
> > it without
> > >worrying that someone might copy it infinitely.
> > >
> > >Is there a way to do this? I know Tradestation has this feature.
> > Metastock
> > >does not. What about Amibroker?
> >
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for Your HP, Epson, Canon or Lexmark
Printer at Myinks.com. Free s/h on orders $50 or more to the US & Canada. http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/l.m7sD/LIdGAA/qnsNAA/GHeqlB/TM
---------------------------------------------------------------------~->
Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx
(Web page: http://groups.yahoo.com/group/amiquote/messages/)
--------------------------------------------
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|