Hi,
Just how would somebody go about marketing their profitable strategy?I am making the assumption, that they don't work in a Hedge Fund/Trading Firm/Bank.Most people seem to give this reply."Well if it was so profitable you wouldn't need other people to invest in your strategy." Or alternatively, they say,"If it was so good then it would market itself, as soon as people knew about it."Neither reply seems near enough to the real-world for me.
Marketing profitable strategy
Marketing a strategy is fundamentally no different than marketing any product. You've come up with a 'better mousetrap' that you think the world would be willing to pay for. However, it’s not enough to simply have a great strategy. The world will not beat a path to your door.
There are a few business models to maybe think about. Sell on your own. Sell through a marketplace (the Amazon model). Sell to a retailer (The Macy model).
Sell on your own. You would need to find and connect with your customers on your own. Maybe a website. Maybe friends and family. Word of mouth. This would be a lot of work (ie basically starting your own business). Might also run up against regulatory issues and need a brokers license to be selling stock advice?
Sell through a marketplace. There are a couple of sites out there that offer strategies a la cart. Take a look at Portfolio123 (https://www.portfolio123.com/app/r2g). QuantConnect seems to be headed in this direction too. One downside is these markets typically require you to use their platform. Not sure how much money you expect to make but Portfolio123 sellers (if they sell at all) make $10-50 / month.
Sell to a retailer. There are A LOT of financial advisors and planners out there (just do a Google search). Perhaps try to sell to them and then they can sell to their customers. This may get around any regulatory issues. They would also have a much better understanding of what customers actually want. Do they want low volatility? High returns? Low turnover?
Other than the few 'strategy sites' out there, there's no established avenue for an individual to profit from selling a strategy (that I'm aware of).
In the end, just like any product, it boils down to selling. As the saying goes 'it's 1% inspiration and 99% perspiration'. It's hard work convincing somebody to part with their hard earned money. Start the way you would think about any business. Who would be your customers? Who is the competition? Why would a customer choose my product over the competition? Why wouldn't they choose my product? How much would a customer pay for my product?
Just my 2 cents.
An important question is, who is the market for your strategy? You're going to have very different marketing strategies if you're trying to sell to institutions or retirement savers or day traders or whatever is appropriate for your strategy.
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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.
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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.
In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.