Originally Posted at forexfactory on August 23, 2011:
I wouldn’t really worry too much about a forex trading platform or broker stealing your ideas.
In order for them to do that, they would need to first identify that your trade signals are worth following. They need to determine whether your system is truly good or whether you are just on a hot streak and about to blow up.
Secondly, they usually do not have the capital available to copy cat your ideas. They are brokers, not hedge funds, and thus are not going to execute hundreds of millions and billions of dollars to copycat your orders.
Thirdly, the tens of millions, hundreds of millions, and billions of dollars in the forex market are generally not made through forex robots. They are made through global macro trading. And global macro trading has existed for decades and will exist indefinitely into the future no matter how much someone attempts to steal your ideas.
People are just not that efficient.
Lastly, if your trading system is that good, then you should be able to get together enough money to get out of the Ninjatraders, Metatraders, and Tradestations of the world and go on the prime broker platforms.
As a general rule I would much more worry about figuring out how to create an insanely profitable system rather than worrying about if someone is going to steal the idea.
That being said, I am not a programmer/quant and not involved in the algorithms, so I am unsure how that would affect your concerns.
Discretionary traders don’t need to worry about it as much.
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