Have you came across isystems.com, and what's your opinion?
The site rents algos and will sell you signals for a monthly fee per algo.
To me, this sounds counter-intuitive to all good teachings about this topic. Why?
- We know a system could be profitable in a Tradestation env. and NOT profitable when run over another source of data like IQFeed. This is caused by various differences in handling the data - especially for futures, like back-adjusting, etc. So as far as I'm concerned, those algos could run on purely <random generated> data. There's no specification of where does the data come from.
- We only see the profit of those algos in their "ideal" setup - with their own data, etc. Customer performance can only be worse and who knows what's the profitability of customers following their signals is.
- Liquidity is a player - Algos always assume they get a fill while in the markets you might not. No idea of what's the decrease in profitability for those algos for various degrees of slippage.
- It's well known your own "monkey" (copyright FT71 ) will mess with your trades, when the homework is not yours and you don't know how the Algo works, so you cannot trust it fully. And you cannot trust it fully, as you know the picture those signals sell is not true because the other mentioned reasons.
- It's interesting their services started to be offered by various brokerages, Stage5 include.
To me, this sounds like another path to ruin disguised in a "pain free holy gail" algo journey to unexisting fortunes.
But I'm open to your comments
I am also interested to know if anyone has any personal experience with the automated isystems platform?
The backtested results for some of the algo systems are certainly ...interesting, but if someone could give their experience on what it's actually like to have real money vested into any of the automated trading solutions (and not just a sim account) that would be great.
We have implemented the iSystems services and the automated execution of trading.
I do not think you can talk in terms of "personal experience" because there are many systems with a variety of results.
Therefore, the experience will vary on the performance of the system that was chosen.
Prior to use of this automation engine, I must have spent 10 hours on this to develop a due diligence process in the system selection. These systems can not be chosen blindly based on performance only. There are many variables that you can consider prior to choosing one. I find that the execution and reporting of the systems is one of the highest calibers out there.
THERE IS S SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING. PAST PERFORMANCE IS NOT INDICTIVE IF FUTURE RESULTS.
PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.