Profit share payment model?

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Hi,

Is it possible or in plans longer term to allow profit share type commission for signal providers? I would be interested to offer my trading systems signals but for your usual guy the subscribing fee would be too high and for big account owners it would be too low. I know my systems work in long term (they are exactly the same I use for my live trading with a considerable amount of money) so I'm interested in having longer term subscribers who will grow their account gradually and when they get their account big, I benefit as will they.

So any plans of offering profit share type commissions?

 

Why not ?

Can you prove your systems work in long term on your live account ?

Thank you.

 
Bill FX:
Why not ?

Can you prove your systems work in long term on your live account ?

Thank you.

At the moment my "discretionary" and automatic trading is on same account so it's not easy. My automatic methods are up very considerably this year and it's important to note that none of the algos uses any kind of idiotic methods like martingale, all positions are based on about 1% of account risk per trade, in other words this is serious stuff.

Anyway this question is more about RAS, not for individual people - I'm basically asking if it would be possible to add this kind of commission model to RAS?

The best way would be to add my live signals to RAS so everyone would see how they work or not but I'm not willing to disclose the trades before I know that profit model is reasonable for me too and I think fixed monthly model is not good in longer term. I'm still a bit hesitant if I should even disclose my positions but if the profit model is okay then maybe it's worth it.

 

Mikkom,

My honest answer to this is simply to move away from MT4. The point of the matter is, is you yourself claim that you are interested in your clients, therefore a solution that has the clients in mind is the best.

I am currently migrating to Oanda, and if the properties of your automated EA's are doing that well, I suggest you use their api.

Oanda's business model is based on clients, sure scalping isn't great, but it's not meant to be unless you have an interbank feed. This will be a consistent trend through all brokers.

Use Oanda, and manage accounts there. For clients its better, and for you, it might be better because of how they integrate automatic trading.

That's what i'm doing, but this is just my 2 cents.

 
Walander:
Mikkom,

My honest answer to this is simply to move away from MT4. The point of the matter is, is you yourself claim that you are interested in your clients, therefore a solution that has the clients in mind is the best.

I am currently migrating to Oanda, and if the properties of your automated EA's are doing that well, I suggest you use their api.

Oanda's business model is based on clients, sure scalping isn't great, but it's not meant to be unless you have an interbank feed. This will be a consistent trend through all brokers.

Use Oanda, and manage accounts there. For clients its better, and for you, it might be better because of how they integrate automatic trading.

That's what i'm doing, but this is just my 2 cents.

I have my strats both in java and mt4 but so far I have a good broker and it works - few examples include price hitting 0.1-0.2 pips near my sl and it not being triggered. I have taken look at implementing a execution framework for FIX but at the moment I see no actual benefit in doing that.

I was trading with interactive brokers before (manually) so I know what a good broker is - however I would never use Oanda, I only trade with brokers who don't take the opposite side of the trade. I have heard good things about oandas account management but again, IB allows this too so I would much rather use them ($10k initial account size however might be a problem for people on this forum) although their api is quite awful as is their FIX implementation. I actually don't understand at all how FIX can be said to be a standard when every place has their own different implementation.. uh.

(I'm not sure if I'm allowed to link to other forums but here is my thread about this on other forum http://www.forexfactory.com/showthread.php?t=167720)

Anyway this has nothing to do with the actual proposition of allowing profit share commission model, I would really like to hear NewDigitals take on this - usually models like this operate on highest high principle so there is a benefit for both the signal provider and trader.

The thing with RAS is mostly about marketing - I could set up my own operation quite easily too but I'm still a bit hesitant if I would do that or not.

 

Details?

mikkom:
I have my strats both in java and mt4 but so far I have a good broker and it works - few examples include price hitting 0.1-0.2 pips near my sl and it not being triggered. I have taken look at implementing a execution framework for FIX but at the moment I see no actual benefit in doing that.

I was trading with interactive brokers before (manually) so I know what a good broker is - however I would never use Oanda, I only trade with brokers who don't take the opposite side of the trade. I have heard good things about oandas account management but again, IB allows this too so I would much rather use them ($10k initial account size however might be a problem for people on this forum) although their api is quite awful as is their FIX implementation. I actually don't understand at all how FIX can be said to be a standard when every place has their own different implementation.. uh.

(I'm not sure if I'm allowed to link to other forums but here is my thread about this on other forum Systematic trading @ Forex Factory)

Anyway this has nothing to do with the actual proposition of allowing profit share commission model, I would really like to hear NewDigitals take on this - usually models like this operate on highest high principle so there is a benefit for both the signal provider and trader.

The thing with RAS is mostly about marketing - I could set up my own operation quite easily too but I'm still a bit hesitant if I would do that or not.

Mikkom,

Profit sharing is an interesting option both for the buyer and for the competent seller of signals...

Could you specify any details about your profit sharing proposal?

S

 
SIMBA:
Mikkom,

Profit sharing is an interesting option both for the buyer and for the competent seller of signals...

Could you specify any details about your profit sharing proposal?

S

Percentage of peak (on close of month) profit minus last highest peak (monthly) profit, quite typical approach.

(only profit from signals provided by signal provider should be counted)

 

%

mikkom:
Percentage of peak (on close of month) profit minus last highest peak (monthly) profit, quite typical approach. (only profit from signals provided by signal provider should be counted)

Ok,

Looks a like a fair approach,obviously it will depend on the actual % applied,but I understand that this is not something to discuss now.

Regards

S

 

Mikkom,

I would think that profit share payment would be a fair compensation approach. This would be somewhat similar to (my) private pooled account and managed account, depending on how you would structure the profit share % as the account grows. You can develope a percentage/range scale based on periodic profit and/or compounded account size. The difference would be that the pooled/managed account is passive while with RAS the subscribers would be executing the trades based on the signal provided.

However, I am not exactly sure what the RAS policies are on compensation. I don't think that ND should find this approach objectionable.

ENJOY!

fxcruiser

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