I have started testing a new idea of an automated options trading system. The code has been written to enter the trades. I've tried to keep it simple by using single option trades and vertical spreads, but nothing more complicated than that. I have some other ideas that I want to add for management of positions, and exiting trades, which is currently being done manually.
With automated trades there is always the risk that the system could enter some trade that no human would do in their right mind, so the system basically queues the trades, and then I check them and enter manually. Began testing from the beginning of this month, and so far it's up $1700 on a $11,600 investment. This is only testing at this stage. I know there are high risks in trading options, so basically I am looking to use other people's money rather than my own, and also it will be much more of a fastlane idea if it is a business using the funds from other investors.
I've done some research, and it looks like this would be classified as a managed investment scheme, at least here in Australia. The trades are made in the US though. To get this off the ground would require a lot of compliance and regulatory things such a license. I have RG146 compliance for Australia, but no AFSL. This is an area that I have limited knowledge in, but would be interested to hear from anyone who has experience with getting other people to invest in their trading system, and meeting regulatory requirements.
With automated trades there is always the risk that the system could enter some trade that no human would do in their right mind, so the system basically queues the trades, and then I check them and enter manually. Began testing from the beginning of this month, and so far it's up $1700 on a $11,600 investment. This is only testing at this stage. I know there are high risks in trading options, so basically I am looking to use other people's money rather than my own, and also it will be much more of a fastlane idea if it is a business using the funds from other investors.
I've done some research, and it looks like this would be classified as a managed investment scheme, at least here in Australia. The trades are made in the US though. To get this off the ground would require a lot of compliance and regulatory things such a license. I have RG146 compliance for Australia, but no AFSL. This is an area that I have limited knowledge in, but would be interested to hear from anyone who has experience with getting other people to invest in their trading system, and meeting regulatory requirements.
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