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Trying to locate prop firm that purchased my automated trading system
I entered a business deal with another trader. We designed an automated trading system to trade the futures market. Without my knowledge he has now sold this idea to one of the big prop firms in Chicago or NYC and cut me out. I do not know any more details than this but would like to track down who purchased this and start court proceedings.
I hear that there is a board or forum at the CBOT where firms share information on technology they are buying, so that one person cannot sell the same idea to several of the funds and rip people off.
If anyone knows how I could start the process of tracking down this deal I would be most appreciative.
Cheers,
C
Can you help answer these questions from other members on NexusFi?
If there is such a board or forum where "firms share information on technology they are buying" (I can't imagine why firms would tell their competitors what technology they are using or have bought), then they aren't going to allow random strangers access to that information whenever they ask.
Why aren't you starting court proceedings against the the trader who was your business partner. You say you developed it together and he has sold it without your Knowledge. So in effect stolen it from you. Sue him and when you win that case and have a legal judgement saying your intellectual property was stolen from you and you were defrauded, you go to the hedge fund, whose name should have come out during the court proceedings, and make your case with them and they will settle. The prop firm won't have intentionally bought a 'stolen' system.
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
Your former partner has to declare the profit from the transaction on income tax, particularly if he sold it to an LLC or S corporation. The purchaser will take a deduction as an expense which may or may not catch up with your partner at a later date if he doesn't declare the transaction on his income tax filing.
If you file a lawsuit against him now, you can ask the court to subpoena his tax and/or his personal financial records. You could request a deposition where you would ask him outright if he sold the system to anyone. If he lies, then that's perjury. But even if you knew who the company was who purchased the system, they're under no obligation to discuss the terms and conditions with you. You have to go after your partner. If you have paperwork which describes the business deal to which you both agreed, then you could present that to the court as evidence that you had an agreement.
I seriously doubt that firms share what software they're buying to trade. Maybe they share computer technology etc. but common sense says that they would never disclose a purchased system.
You could also aggressively pursue the source of your information. There must be a reason why they disclosed the transaction to you.
If all else fails, trade the system yourself and make some money.
I don't approve of anyone stealing anything from anybody, and if you can make some recovery, that is a good thing.
But @phantomtrader has it right. If the system is any good, trade it. If it's not any good, do you think you should be selling it to other traders? (I know that people do, which is my point.)
I hope you get something good out of this either way, but I really hope you have a good system and that it works for you.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
