Algorithmic Futures operates as a third-party trading system developer. We do not manage other people's money like a hedge fund, but we essentially license our trading strategies to auto-trade into customer accounts.
We've partnered with an introducing broker, the Fox Group, who sets up all of our customer accounts at TradeStation and monitors our trading systems. TradeStation is a trading platform with a built-in programming language, backtesting engine and algorithmic execution. The systems are set up on the Fox Group's remote server and trade into customer accounts as a completely auto-traded solution. We offer a monthly, quarterly or annual subscription options. Minimum account sizes start as low as $15,000.
Although the business required significant up-front research and development, partnering with our introducing broker really streamlines daily operations. Currently, my time is focused on updating performance on the website every month, answering inbound questions via email and calls, and focusing on marketing, content generation and advertising. When a new customer wants to sign up, I kick them to the Fox Group to complete the onboarding process. Once their account is set up and funded, I send an invoice via Stripe and the account is ready for trading.
I only spend about $500 per month on advertising (AdRoll, Google & FB ads) so the business is very profitable. Besides for advertising and WIX website costs, there are no other expenses. I have ~20 customers with payments ranging from $150 per month to $15,000 annually, so there is a wide range of CLV. I look forward to keeping everyone updated on my journey as I continue to build Algorithmic Futures!