How much do You Pay for a Winner System | Forex Factory

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How much do You Pay for a Winner System

  • Poll

  • How much do you pay for a winning system? (Read the first post for more info)
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  • #1
  • First Post: Dec 1, 2006 10:56am Dec 1, 2006 10:56am
Suppose there is a strategy out there that is a winner based on the following results:

 

  1. Backtest for over 300 trades on a two year period (all possible trades within the 2 year period are taken into account). The backtest shows that 70%+ of the trades are winners and the payrate is over 90% (e.g. every winning trade wins 90 pips while every loser losses 100 pips). (10,000+ pips in 2 years)
  2. Forward test for a period of 3 months on a demo account confirms the results of backtest. (1250+ pips in 3 months)
  3. Real trade on a live account for over 3 months confirms the results of backtest and forward test. (1200+ pips in 3 months)

Do you pay money to buy such a system? If yes, why and how much? If no, why?

I assume that you are convinced the info about backtest, forward test, and live account is not a scam and is absolutely true.

  • #2
  • Dec 1, 2006 11:13am Dec 1, 2006 11:13am
ive had a handful of systems fail on me after seeing the kind of results you posted. and the systems were built right too...

if this system was still successful on live account for about 6 more month, then i would say its worth some good money.
Relax and be happy.
  • #3
  • Dec 1, 2006 11:22am Dec 1, 2006 11:22am
You can always sell a system and someone is going to pirate it. or change something very small and give it out. if systems make so much money, my question is why not just trade the system rather than try to make money off of it. I know that there is no risk if you sell a system compared to actually trading it. I appreicate what you have done with your current system and I appreciate that for sure.
  • #4
  • Dec 1, 2006 11:29am Dec 1, 2006 11:29am
I suppose that is why people come up with signals. That way they can control the system. They can trade it and prevent it from being pirated...

What a conundrum...


Quoting bmwboyee
You can always sell a system and someone is going to pirate it. or change something very small and give it out. if systems make so much money, my question is why not just trade the system rather than try to make money off of it. I know that there is no risk if you sell a system compared to actually trading it. I appreicate what you have done with your current system and I appreciate that for sure.
  • #5
  • Dec 1, 2006 12:14pm Dec 1, 2006 12:14pm
Yes, I would get it. That does not mean that I would use it because I do not use systems I have access to now, even ones given to me for free. I will admit that the exception is one custom indicator which was given to me, and works great.

The reason I would get it would be to learn how it works. In other words I would want to learn from it rather than necessarily trading it. In the same way as I do not trade Vegas' signals, but I do try to learn from them.

If I want to use someone else's trading system, then I have money in a managed account and do not have to worry about doing anything. This week was not a good one for the managed account--it managed to get on the wrong side of the trend. These things happen even to good managed accounts. And yes, I watch how he trades and try to learn from what he does, he mostly has profitable trades, but all systems sometimes fail. In general his results are consistently good and almost always better than mine.
  • #6
  • Dec 1, 2006 12:30pm Dec 1, 2006 12:30pm
Quoting merlin
ive had a handful of systems fail on me after seeing the kind of results you posted. and the systems were built right too...

if this system was still successful on live account for about 6 more month, then i would say its worth some good money.
I like the article your text is linked to. It helped me a lot to build my own set of EAs.
  • #7
  • Dec 1, 2006 12:42pm Dec 1, 2006 12:42pm
Quoting bmwboyee
You can always sell a system and someone is going to pirate it. or change something very small and give it out. if systems make so much money, my question is why not just trade the system rather than try to make money off of it. I know that there is no risk if you sell a system compared to actually trading it. I appreicate what you have done with your current system and I appreciate that for sure.
Picture this:

I've got $20,000.00 and a system that is really profitable. Since I'm a conservative person I never risk more than 1% of my account per trade. With such an approach the best that I can get from my system could be $40,000.00 profit before tax in a year, or something like that (I didn't make calculations, I just assume the numbers).

Now if I sell the system and 500 people by it in a year for the price of say $300 I can make $150,000.00.

So selling system can make a substantial amount of money for those who doesn't own it.

BTW, I raised this question not because I'm going to sell my EAs. I've already shared them with everybody at FF for free. I was just thinking of people's mentality about a ready-made system.

In my opinion when you are in this business it's good to think about all legitimate methods to make money.

I also need to point out that I do not beleive in the existence of a system that can make you a billionaire in a few years. There might be an approach that makes substantial amount of money in short term but in long term I absolutely doubt it.
  • #8
  • Dec 1, 2006 12:49pm Dec 1, 2006 12:49pm
Quoting smjones
I suppose that is why people come up with signals. That way they can control the system. They can trade it and prevent it from being pirated...

What a conundrum...
This is a thoughtful idea.
  • #9
  • Dec 1, 2006 12:52pm Dec 1, 2006 12:52pm
Quoting moonchild
Yes, I would get it. That does not mean that I would use it because I do not use systems I have access to now, even ones given to me for free. I will admit that the exception is one custom indicator which was given to me, and works great.

The reason I would get it would be to learn how it works. In other words I would want to learn from it rather than necessarily trading it. In the same way as I do not trade Vegas' signals, but I do try to learn from them.

If I want to use someone else's trading system, then I have money in a managed account and do not have to worry about doing anything. This week was not a good one for the managed account--it managed to get on the wrong side of the trend. These things happen even to good managed accounts. And yes, I watch how he trades and try to learn from what he does, he mostly has profitable trades, but all systems sometimes fail. In general his results are consistently good and almost always better than mine.
I never thought of this aspect. You are right you may use a system as a training tool and then build your own system on top of it.
  • #10
  • Dec 1, 2006 12:55pm Dec 1, 2006 12:55pm
To be honest, i would probably pay under $500 for a system that produce profit. depending on how well it actually traded. Maybe pay in incriments. $200 for the first set of winning trades, $200 for the next all the way to $500. Anymore than that it wouldnt really be worth it to me. the only problem is putting trust in the system and the amount of money you are going to risk. then you run into things like snakey brokers. Some EA's have basically been banned....or so i have heard.
  • #11
  • Dec 1, 2006 1:01pm Dec 1, 2006 1:01pm
You know, I wish there could be a better system. I would not mind paying a LOT of money for a system that will make me a LOT of money!
But of course it does not work like that.
If the honor system would still work, then I would pay you 10%-20% of whatever profits AFTER I use it.

I know, nobody would do that anymore.
Maybe 10 days free of a really good signal service, until your are hooked, and then pay for it....

Just my 2 cents.

Looking at your existing EAs, I would be one of your customers for sure!!
Steve
  • #12
  • Dec 1, 2006 1:19pm Dec 1, 2006 1:19pm
Quoting bmwboyee
To be honest, i would probably pay under $500 for a system that produce profit. depending on how well it actually traded. Maybe pay in incriments. $200 for the first set of winning trades, $200 for the next all the way to $500. Anymore than that it wouldnt really be worth it to me. the only problem is putting trust in the system and the amount of money you are going to risk. then you run into things like snakey brokers. Some EA's have basically been banned....or so i have heard.
I can hear you.
  • #13
  • Edited 1:37pm Dec 1, 2006 1:20pm | Edited 1:37pm
Quoting PipSteve
....

Just my 2 cents.

Looking at your existing EAs, I would be one of your customers for sure!!
I appreciate that and wish you good luck.
  • #14
  • Dec 1, 2006 1:33pm Dec 1, 2006 1:33pm
Wouldn't that be known as a managed account?


Quoting PipSteve

If the honor system would still work, then I would pay you 10%-20% of whatever profits AFTER I use it.
  • #15
  • Dec 1, 2006 5:30pm Dec 1, 2006 5:30pm
I voted to pay zero or not getting the system at all even if it is free, whatever you mean by zero..

I am an Engineer & I can easily curve fit the data of any chart & get a certain formula that matches the whole data for the past 2 years on the daily chart...Once I have the formula, I will start working it out for the next 3-6 months either on demo or live account...The key here, if the personality of the market didn't change & it probably won't change in 2 years unless it has been the same for a long time, my curve fitted system should work perfectly with minimal deviations and/or errors...

However, once the personality of the market changes, my system will completely go bust since the formula won't work into the future anymore...


Thanks,

Nader
  • #16
  • Dec 1, 2006 5:50pm Dec 1, 2006 5:50pm
Absolutely never, ever pay for anything. I'm in this market to make money, not to spend it. Chart time and library books are free. There are also a lot of scams out there. I can't name them here, but to get outside of forex, ever heard of Amway?

I'm not dishonest, but I could make a killing in this market if I was. Not through trading, but through stringing along helpless, desperate, get-rich-quick people.

I love late-night infomercials. They make me laugh. Learn about the stochastic oscillator for the low low price of only $5000!
"The time to act is when others show signs of tire." --W.D. Gann
  • #17
  • Dec 1, 2006 8:33pm Dec 1, 2006 8:33pm
Quoting narafa
I voted to pay zero or not getting the system at all even if it is free, whatever you mean by zero..

I am an Engineer & I can easily curve fit the data of any chart & get a certain formula that matches the whole data for the past 2 years on the daily chart...Once I have the formula, I will start working it out for the next 3-6 months either on demo or live account...The key here, if the personality of the market didn't change & it probably won't change in 2 years unless it has been the same for a long time, my curve fitted system should work perfectly with minimal deviations and/or errors...

However, once the personality of the market changes, my system will completely go bust since the formula won't work into the future anymore...


Thanks,

Nader
Thanks very much for your feedback.
  • #18
  • Dec 1, 2006 8:34pm Dec 1, 2006 8:34pm
Quoting dukeofdents
Absolutely never, ever pay for anything. I'm in this market to make money, not to spend it. Chart time and library books are free. There are also a lot of scams out there. I can't name them here, but to get outside of forex, ever heard of Amway?

I'm not dishonest, but I could make a killing in this market if I was. Not through trading, but through stringing along helpless, desperate, get-rich-quick people.

I love late-night infomercials. They make me laugh. Learn about the stochastic oscillator for the low low price of only $5000!
Thanks very much for your feedback.
  • #19
  • Dec 1, 2006 8:46pm Dec 1, 2006 8:46pm
I can pay more than $1000 if the winning system can make more than 100 pip a day. If less i won't pay
Yacob I dive the market without Fear.
  • #20
  • Dec 1, 2006 9:46pm Dec 1, 2006 9:46pm
My thoughts...

My personality (i first see/look for the best in everyone i meet), would allow myself, as the author of such a product that i had concluded was worthy of sharing, to offer said product for a period of 30 to 90 days in a time limited format to use the system in demo or live accounts without fee. After that point in time if they wanted to continue to use the "winning" system they would have the option of purchase. One thing that might eliminate the possibility of buyer's remorse would be some resonable monthly fee for using a time-dated system. Say XX$ for a 31 day period. This way someone that was using even a micro account might be able to justify the business expense if resonable.

LOL. Here's an idea. Why not have a system that works on XYZbroker and you are an IB and the hitch is that those who wish to use your system can do so for free as long as the system is traded on an account that lists you as the IB? You could literaly make tens of thousands of dollars as an IB if the model was a winner. That might be a Win, Win situation.

Just rambling and having fun.
Thom
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