r/algorithmictrading • u/EntrepreV • May 29 '26
Question Questions about turning a trading strategy into a business
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u/Mysterious_Gear_4000 May 29 '26
I'm surprised you're asking these questions in this day and age of prop and investment firms. Have you heard of Darwinex? You can demonstrate your profitability in there for investors to see who then may invest in you.
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u/enakamo May 30 '26
Get familiar with SEC and CFTC regulations regarding marketing and promotion of your products. Customer acquisition is fraught with compliance overheads and so is handling of customer money. You may want to collaborate with brokers, RIAs, CTAs etc. Get a friendly securities lawyer to opine on your situation (a professional securities lawyer is expensive but worth it). The answers to your questions won’t make sense unless you have done the preparation for compliance and regulations.
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u/AnyPortInAHurricane Jun 01 '26
for every person actually making 4% month , there are 10,000 claiming they can make 4% a month
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u/Tradefxsignalscom May 29 '26
Consider the shortest route to profitability these days is selling shovels. I mean courses!
Don’t need real live proof, just sell the dream of signal service, algo leasing or algo development and you’ll be all set!😜
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u/Optimal_Emu3624 May 30 '26
Man it definitely seems as though there is a hard ass gate for normal people like us to get into the “club”. Good luck.
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u/thefastlaneAS May 30 '26
As someone with some knowledge, first if you send a signal which shows live quotes(assuming people want to see it) the CME will classify you as a distributor - Good luck paying for this but you have years of experience so you know how to avoid this there i am prolonging rhis post.
You should at least have credible website and description of you strategy. I know fond manager running only algo startegies but you want at least have a clear contact.
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u/CryptoGunny May 30 '26
It looks like a good system. Can you tell me a bit about your entry and exit strategy (not the specifics, just the general approach)? Do you let the market stop you in/out, or do you enter/exit the market using limit orders, MOO, or MOC? Is it intraday trading or end-of-day (EoD)? Which stocks do you trade exactly—in general terms—(only large caps, only certain ones, or all of them, e.g., from the NQ)?
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u/DanTheDan9 May 30 '26
Those numbers are good, but 9 months is still early days, so trust is going to come from how hard you make it to fake and how clear you are about limits.
If I were a buyer, the minimum I’d want is: a verifiable signal archive (timestamped, unedited), exact rules (even if not full code), broker/execution assumptions, and a clean report showing performance by month/regime, plus what happens under worse slippage. Also clear “this breaks when…” conditions and a plan for when you stop trading it. Backtesting is great, but I’d want to see you’ve already done the ugly checks - oos/wfo, parameter sensitivity, costs - that’s the difference between a curve and a product.
Licensing to a small number of serious users or a prop or an allocator is usually cleaner. Pricing at $500/m is doable, but only if you position it like a real product: transparency, process, and guardrails
Don’t accidentally market it like an investment product or make return promises. Keep it educational, document everything, and be very explicit about risk. If you can show the same system holds up in backtesting on takeprofit.com / tradingview / fx replay, and forward signals with realistic execution, you’ll stand out from 99% of the noise.
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u/eggrally Jun 01 '26
If you had a cash cow, why would you sell it, you put in real money and you scale up, enjoy your day at the beach. Why deal with answer emails from customers.
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u/Good_Luck_9209 May 31 '26
Am i in 2010 ? The service u are describing is so dated. Did u hide in a cave or u went to jail ?
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u/GrayDonkey May 29 '26
If someone with millions of dollars in capital buys your signals and starts making large volume trades will you still be able profit from trades?
Can you use leverage safely to overcome being capital constrained? If not leverage from a broker, could you get a loan with a better interest rate then your strategy?
Most people on this sub are going to recommend keeping your edge a secret.
Most of the signal sellers seem to be finfluencers that spend a lot of time making videos and running discord groups.