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>Suppose someone wishes to purchase a historically successful trading system,
>how do we place a value on it? Do we sell the system outright? Do we sell
>the system for a specified time period? Do we charge a proportion of
[snip]
All good questions, but none of them address the true valuation of a
trading system: how well it fits the purchaser. I'll use me as an
example.
For example, if you offered me a daytrading system, it's rather
worthless to me, no matter how well it performs. You'd have to
pay me to trade it. I'd happily test it on historical data, as an
intellectual exercise, but probably not much more.
At the other extreme, if you offered me an EOD system (say like
Aberration, or a scale-trading system) that performed well but
required a huge account and a stomach for large drawdowns, that
also is worthless to me except as a curiosity to play with using
historical data.
My ideal system is somewhere in between those two extremes, and it
likely makes heavy use of options. And I'm just one individual out
of thousands of traders, each with their own unique personalities
and biases.
>I apologise if this topic has been covered previously - but I have
>not been able to find any helpful info. I look forward to any
>ideas you may have. TIA!
I seriously doubt there's an answer. Something I would value highly
would be worthless to someone else, and vice versa.
If you have a system to sell, why are you selling it? If you're
considering buying one, does it have attributes that disagree with
you, or is you+it a marriage made in heaven?
--
,|___ Alex Matulich -- alex@xxxxxxxxxxxxxx
// +__> Director of Research and Development
// \
// __) Unicorn Research Corporation -- http://unicorn.us.com
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