Why You Should Consider Algo Trading

Sobering Facts about Trading and why you should consider automated trading
About 80% of people who set out to trade actively will blow most of their account within the first year. For the most part, this is due to two main reasons: 

1. Lack of trading experience and knowledge;
2. Lack of discipline or risk management, and the inability to deal with stress. 

Another factor to consider… 
You are competing against machines which are faster, and sorry to say, usually smarter. 
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The machines account for over 85% of the volume on major stock and futures exchanges. Still, people will continue to try their luck as point and click day-traders. If you’re not a dreamer, and you are highly motivated and can focus for at least 3-4 hours a day, you can succeed. But most people don’t have that luxury of time, nor the personality traits necessary to win over the long term.

Enter the realm of automated trading. There are many advantages to trading this way:

1. All the work is in the preparation. You don’t have the burden of stress which usually leads to making terrible trading decisions.
2. Most obviously, the system can work for you and churn out profits while you are sleeping.
3. You can test to see if a trading idea really works over the long term. When you begin to back-test your trading ideas you will be surprised to see that many broadly accepted trading indicators are actually quite wrong. Disclaimer: I have never met a successful point and click pro-trader who used used stochastics, MACD, or moving averages to enter or exit a trade. 
4. It is easier to write code than you may imagine. Unless you are developing complex trading systems which use artificial intelligence or implement global macro ideas, you can probably write a successful trading system after about 500 to 700 hours of coding, more for some, far less for those who have some experience in either trading or coding.

The aim of this private course is to significantly reduce the time it takes to write your own successful trading systems. It will also help point and click traders improve their risk management and discipline.
We thought we would show you what you can expect to accomplish in writing your own systems. Here are a few examples of programs trading forex and CFDs. Note that these results do not include the compounding of profits, and do include the cost of margin, spread and slippage. 
We will advise you that any back-tested system will never be as successful in real time trading. In fact, that is the first and most important lesson you will ever learn about trade system development. Why does it work like this? 

In brief, any system that you develop on historical data will be inherently curve fit. One can design a curve fit system which will show great returns, but you can be assured that going forward, the real time results will be far less impressive, and may even lose a ton of money. In order to reduce this effect of curve fitting, we use very few entry / exit conditions, test the system on multiple related products and over different time frames. We also test each system over various market conditions going back at least a decade and then ensure we have a large number of trades to increase the confidence factor.  If the results are similar across the board, then we know we have a winning trade idea. It may not make 150% per year, every year, but if it makes 40%-50% per year consistently, it’s still outperforming the vast majority of money managers by a long shot. This is possible if you put in the hours.