MK

Money Factory

05/2016

I think that this was the dream of everyone at least once in a lifetime. I don’t want to be a milionare, but pasive income would be great for my family and my inner peace. For this purpose I started dive in financial world. First what you need is research in main areas.

  • Trading strategies
    • find & develop
    • deploy & manage
    •  
  • Backtesting
    • data
    • test engine
    • backtest your strategies
    • portfolio (making, testing)
  • Copy trades
    • simulation engine
  • Visualizations

Copy Trades

Or mirroring them, services such as signal services, signal providers is last layer which you need for distributing your know how over the internet to your customers. In czech republic you must have to certification of Czech National Bank to providing your signals to customers. Is divided into two groups:

  • manage investor capital and trading with them
  • providing trading signals

I would like to target only to second group, which has less restrictions. Some brokers provides PAMM accounts which allows providing signals to investors and broker hold all obligations. But you have lock-in only to own broker and all knows that brokers changed in time, makes optimalizations and sometimes manipulate with data or other shity behaviors such as blocking your money etc.. I think that optional state is distribution of capital between various brokers, but this requires robust platform for distributing:

  • Expert Advisors
    • settings
    • indicators
    • strategies
  • Signals
    • service
    • signals
    • client
    • web application

depends on technique and business model which you will use

Expert Advisors

Let’s talk more about techniques, if you would like to sell your know how as Expert Advisor in source/compiled files for MetaTrader or other platforms you must consider all benefits and negatives:

  • Benefits
    • Simple for distribution(for you) - just downloadable item in your store
  • Negatives
    • Difficult subscribe/setup/manage (for customers) for a long time
    • Updates - You must provide updates and distribute them to your clients
    • Documentation - means you must provide settings, indicators and other stuff which is need it to run your EAs, how to setup whole environment and managing them for a long time with updates, changing settings etc.

From my point of view is nice great addition for demanding customers, but more than 70% of your clients would like to subscribe your money factory simple as possible and this way is not certainly the easiest way.

Signals

  • Benefits
    • Simple for subscribe(for clients)
  • Negatives
    • Complexity (to design, develop and maintain)
    • Cost (hosting, web platform)

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