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Presumably what you're contemplating for sale (not necessarily by you
perhaps) is a system or strategy that is intended to be deployed by a TS
user, any I'd expect any prospective customers in that universe to be overly
discerning and want to see a lot of evidence that it works. On the whole TS
users are a "cheap lot" in terms of buying strategies as most of them have
been burned at one time or another. When anyone asks me to buy a trading
system, whether it's for use with TS or not, I ask to see performance on a
risk-adjusted basis where positions can be scaled into 7 figure values.
Silence seems to always follow. A steady growth equity curve for which a
Sharpe ratio is > 1.75, and the portfolio value is >$10mm are minimum
characteristics of an acceptable system imo.
-----Original Message-----
From: Mike Eggleston [mailto:mikee@xxxxxxxxxxxx]
Sent: Sunday, March 16, 2003 9:56 AM
To: omega-list@xxxxxxxxxx
Subject: (fwd) thought
For a given strategy that a person wants to sell or share
what proof or documentation is necessary that the strategy
works? Using the TS6 strategy performance reports what
either Profit Factor or Percentage Profit is good enough
to sell a strategy? Would a Percentage Profit of 60% be
good enough, or 70%? What is a minimum (I think below 50%
is stupid) and what is a realistic maximum? Is there a
strategy that is 100%?
For greed motives what would be a reasonable price for a
strategy that preformed at these, or different, levels?
Mike
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