Automated Trading Is Gambling

Discussion in 'Automated Trading' started by fordewind, Nov 4, 2017.

  1. So i found that the variables and variances should be gambling.Interesting to hear from those who found the same.
     
  2. Simples

    Simples

    Automated trading is mechanical trading and is very much like gambling. This in the way that you should try to become your own house. In order to do that, you need to follow your system without question, and that comes with its own pitfalls of being wrong even if the stats indicate you "should be right". Also, mechanical rules may make you miss better opportunities that the system just doesn't catch onto, so it may have worse performance than some form of discretionary trading. It's very hard to make steady returns using mechanical rules, as markets ebb and flow, so may drawdown and pnl.
     
  3. 777

    777

    Many, many billions have been made by Renaissance Technologies via full automation.

    I have a hunch most ET posters are not on their level, though.
     
  4. qxr1011

    qxr1011

    any trading is gambling, so what?
     
    ElCubano likes this.
  5. algofy

    algofy

    Just a hunch?
     
    murray t turtle and 777 like this.
  6. johnnyrock

    johnnyrock

    All trading and investing is gambling.
     
    lawrence-lugar likes this.
  7. just21

    just21

    Is it gambling if you always win?
     
    6wives likes this.
  8. WasDown

    WasDown

    When you make bets or take risks,
    with Gambling, the odds are against you,
    with Investing, the odds are with you, and
    with Trusting your luck, you don't have a clue about the odds.

    How automated trading or un-automated trading should be categorized probably depends on the trader .
     
  9. d08

    d08

    Almost all businesses are gambling as well. You could extrapolate that as "any job". If you die in a car crash on your way to work, didn't you gamble with your life?

    There's a different definition of gambling as well:
    take risky action in the hope of a desired result.

    That's not professional trading, hope isn't a factor. Hope is involved in a dice game where the player is just hoping for certain numbers without any chance of affecting the result and having no statistical edge.
     
    billv, comagnum, DaveV and 5 others like this.
  10. Billions on billions is good of course,but you`ll never find a 100-1000% return in automation,though,which you can find plenty in the discretional trading world.
     
    #10     Nov 4, 2017
    murray t turtle and Handle123 like this.