When any kind of trading "works", meaning it generates alpha above and beyond the market, you won't hear about it. Why would anybody give away their secret sauce?
To sell the bot itself. Say I have a bankroll of $10,000 to work with. Say I can generate 20% per year on it. That's $2,000. 20% is good, but on $10k, that's not much. If I borrow money, then that cuts into my margins. If I sell access to the bot and charge other people, they get, say 15% and I get some flat fee and 5% of however much they invest, so some such.
That secret sauce isn't going to last forever. Jan street's gonna find your alpha and leave you with none, so monetizing sooner rather than later is advantageous.
When any kind of trading "works", meaning it generates alpha above and beyond the market, you won't hear about it. Why would anybody give away their secret sauce?
To sell the bot itself. Say I have a bankroll of $10,000 to work with. Say I can generate 20% per year on it. That's $2,000. 20% is good, but on $10k, that's not much. If I borrow money, then that cuts into my margins. If I sell access to the bot and charge other people, they get, say 15% and I get some flat fee and 5% of however much they invest, so some such.
That secret sauce isn't going to last forever. Jan street's gonna find your alpha and leave you with none, so monetizing sooner rather than later is advantageous.
wouldn't you only "sell the bot" if that was more profitable than operating it yourself though? in that case, i'd say the bot wasn't working.
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