What’s a good roi and how much should I charge? My goal is to make $100k this year.
Hi, I would charge 100K, all you need is 1 subscriber.
Most people want 5 to 1 return to drawdown ratio. If 100 new systems start some of them will obtain that for a time and attract subscribers. But in reality 5 to 1 just isn’t realistic in the long run. So when that strategy breaks 5 to 1 most subscribers will flee to other systems. In reality anything with a long term ROI over 15% cagr and a max drawdown of 50% or less is world class.
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In reality anything with a long term ROI over 15% cagr and a max drawdown of 50% or less is world class.
That’s absolutely true, but “world class” doesn’t necessarily cut it with C2 subscribers. What you will need to do is examine the Leader Board or the Grid to study other strategies with similar features to yours (ie, trading options vs futures vs small cap stocks, intraday trades vs swing or trend, etc). Find the ones that are doing well and attracting subscribers (look at the Auto-trading statistics). Look at the returns and drawdowns of such systems… this is your competition and your system will compete against their statistics. They may not all be safe systems for investors, and may crash and burn (most high-flyers do) but they are your competition.
FYI, the top earner from this list is earning at a rate of about $50K/year:
https://collective2.com/lb/347
(see the monthly subscription fee totals here: Collective2)
If you were able to produce better performance and charge twice as much then $100K/year might be possible. Right now there are a lot of good systems to choose from and relatively few subscribers. This is great for subscribers such as myself, but it makes it challenging for system vendors to stand out.
Correction: That particular vendor (Black Boulder Trading) has the #1 and #5 spots in that list, so the total would be closer to $75K/year.
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Whence comes the discrepancy between auto-trading account counts and real revenue estimates (and I realize even as I ask this that real real revenues are not knowable here)? I realize this is a coarse way to estimate revenues, but on a recent TQQQ trade in that system there were 287 trades on one side (BTO), and at $75/month that’d be closer to $20k per month. And as you state, that’s just one of BlackBoulderTrading’s systems. Even if only half of those trades in auto-trading accounts are paying $75, that system alone should generate far more than $50k per year to the trade leader.
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Agreed that this list is only a rough estimate – it does not take into account discounts given to subscribers.
I don’t think that counting the number of lines in the autotrade data is a good estimate however – the trades are often broken up into pieces. Also, some subscribers trade systems manually and will not show up in the autotrade data.
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