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>> none of my biz, but I don't think the label "CTA" ensures ethics,
>> integrity, or ability. It's a protection racket like most trade
>> unions, if I may be so crude.
>>
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>>QUESTION: How many NFA member CTA's do you see selling systems? Name one
>if you can! I rest my case!
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>Sir:
>Your past performance does not guarantee your future results.
>
>Sincerely,
>CW
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>As a registered CTA our trading record is public and is audited by the NFA.
>No extravagant claims are necessary, the facts speak for themselves. So the
>public is the "protected" entity here.
>
>BTW, we use computerized systems in our trading, but since they actually
>work we'd be crazy to sell them.
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>I've seen statements like this several times over the last year, and I
>question the thinking. Assuming the original author is efficient
>at getting orders to the floor, it seems to me that other traders using
>the same entry points in the same direction could be beneficial to
>the original author. There is the potential for additional slippage,
>but isn't that more than offset by the potential to move the market
>in the "right" direction? In addition, through lease or purchase of the
>system, a new revenue stream is generated for the author's business.
>Thoughts?
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>That would seem to be true to me, that's part of why technical analysis
works it
>becomes a self fulfilling prophecy.
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I saw this same line of reasoning the other day in a Larry Williams. The
fact is, if more traders are acting on our signals, the increased
competition would only make it harder to get our entry points. Hey, I guess
we could sell "systems" that would give follow-on entries the day after we
enter, but that would be unethical, no?
Past performance is no guarantee, but the long-term statistics provide us a
certain assurance that things will probably work into the future. That's
one great reason to use a computerized system - You can know very well just
what the odds are. They're good enough for me, in fact that's the only way
we have the confidence to trade. If you don't know the odds, then you're
just gambling.
If somebody wants to give us 100K or so we'd consider "selling" our
stuff...;) but otherwise it's worth far more to trade than it would be to
peddle systems.
Happy speculating!
Phil
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