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Yes, although the brokerage business has it's possibilities, I agree that
enhancing the current model was the more logical idea. I even suggested such
a thing to the suggestion box at Omega about the time that mytrack got
going.
Many on this list along with the rest of us have probably got it wrong when
criticizing the boys at TT. I've always heard the you get more bees with
honey than with vinegar. If a trust was set up that would pay out when the
product got the most needed improvements. It would give the boys some
incentive to do something. I know that that isn't likely to happen but if
25000 TS owners put up $100 for such a fund that would be 2.5 million for
incentive.
Prosper
> You seem to think that the only option was "fixing legacy software"
> and continuing to try and sell it with slick ads on CNBC.
>
> Almost all software companies are trying to convert to "services" and
> "subscription based" models so there is nothing wrong with that
> objective. But I can think of many ways to do it without entering the
> brokerage business.
>
> Think of all the things that TradeStation users would pay a monthly
> fee for, such as:
>
> > Good data (real-time, historical, etc.)
> > Good support
> > Solid software with evolutionary enhancements
> > Good training on trading techniques
> > Good training on EasyLanguage programming
> > Trading systems that really work
> > Semiautomatic and automatic order placement with lots
> of brokerage services
> > Good accounting reports for tax purposes
> > ....
>
> Now think of all the disadvantages of the new business model:
>
> > Huge liability for losses if the data is bad or the
> software has bugs
> > Alienating all brokerage services by competing with them
> > Alienating all data providers by not supporting their data
> > Overcoming customer's resistance to changing brokers
> > Alienating the existing customer base by discontinuing
> the product they use to make a living
> > Brokerage services are quickly becoming a commodity with
> very low commissions. Those you make money do it with very
> sophisticated financial management rather than commissions.
> > ...
>
> Then look at the technical and managerial challenges of making
> it really work:
>
> > With data-on-demand how do bad ticks get fixed?
> > How can there be enough server capacity to handle fast
> markets and "Greenspan moments" reliably?
> > Can Omega really change from the "one-time sale to the
> naive newby" mentality to providing the quality products
> and services required to keep customers paying the monthly
> fees?
> > ...
>
> Perhaps it will work. We all hope so. But it sure seems like
> a high-risk strategy to me...
>
> Bob Fulks
>
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