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-----Original Message-----
From: mitch ryder <ynos@xxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Friday, August 07, 1998 10:27 AM
Subject: Re: What should systems sell for?
>Rt'ers
>I am new to system buying and I need some help. What should systems sell
for?
Many good systems can be developed from indicators commonly
available as part of a charting program. Charting programs range from
around $100 for end of day to over $2000 for those with programming and back
testing capabilities.
>One vendor sells them by the basket for educational reasons.
You'll get an education all right, but it won't be the one you are
hoping for.
> Others sell them with track records.
Track records help but can be deceiving. Do they show every trade?
Is the time period representative of all market conditions or selected for
the best results? Are the results actual trades, including commissions and
slippage, or projections from back testing?
>If a system nets the owner 20K a year with on a 10 k account. How much is
it worth?
ABSOLUTELY NOTHING! No such system exists. If it did why would
anyone sell it? Any one who makes such a claim is a con man (con person?).
This month's "Futures" magazine list the No. 1 trading mistake as having
"unrealistic expectations". On page 36 they said; "...set a realistic goal,
for example 10% to 30% per year of your trading capital. If you can beat
the S&P 500 consistently, you will be in the top 20% of professional fund
managers"
> What is a good way to decide if a price is fair? How do we determine
what it is worth?
I am reluctant to tell you about Futures Truth. They test systems
and publish the results. Before you can be successful at trading you must
get an education. There are two ways to do this.
The cheap way: go to the library and bookstore, read about the type
of trading you are interested in. Study the market, experiment with various
indicators, study psychology (yours and the market's), learn money
management and risk control, paper trade, and when you feel confident take
small positions. The biggest cost is your time.
The other is the expensive way: buy a system you don't understand,
trade it, lose money, buy another system and repeat the process. The
cheapest part of this is buying the systems.
Good luck and good trading,
Ray Raffurty
Attachment Converted: "c:\eudora\attach\Futures Truth Tracked System List.url"
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