Can automated trading system be profitable?

Discussion in 'Automated Trading' started by newguy05, Jan 23, 2008.

  1. Is there really a profitable automated trading system / bot? I mean with a proven >5% return of 1-2+ years.

    If yes, then why havent all the wallstreet firms with their billions of dollars using it?

    I am a senior system developer (j2ee, database, etc..) professionally and have spent quite a bit of time researching/creating poker bots but at the end i realized it's just not possible to create a good bot in any game that is heavily dependent on human emotions. I would imagine a trading bot is much more difficult as the cominbation is almost infinite.
  2. Quote from newguy05:

    "a proven >5% return of 1-2+ years."

    why is that worthwhile?
  3. just slightly above what you would get putting money in one of those high yield saving account.

    i think it would be an accomplishment if there is a bot that can consistently get >5% annually over a period of few years.
  4. if it can be traded by hand... it can be automated. Don't believe me PM ME and I guarantee I can program your strategy, but only PM ME if it is profitable
  5. You seem to be assuming that the banks are not using these strategies when, in fact, they are. As are many hedge funds.

    Certainly they will not be in a rush to let you know the details. But automated, quant driven models are being traded on every timeframe from seconds to days. They are not of course all scaleable to invest billions of dollars, hence why one firm does not accumulate all the money in the world.....
  6. ofcourse it's possible - esp for 5% but this also depends on level of capital employed. Anyone can develop a automated system to get 5% it's very easy. but scaling up to millions is very difficult. they're not based on human emotions they're statistical. strategies based on emotions are more discretionary but can be automated too but maybe in 10 years when we can model human emotions more accruately.

    Many automated strategies at banks on Stocks/fx employ around 10mil each and generate around 5-15%. they ofcourse normally employ a range of strategies, e.g. some hedge fund may have 20 strategies with 10mil each workin at the same time. ofcourse they're not all perfect and continuelly updated to adjust to changed in market. I don't think there is a single automated strategy anyone employs that can be left to its own over long periods of time.

    question is, why would you want an automated strategy for only 5% return? it's probably easier to get that without automation.. are u lazy? there are too many people these days with growing fetish for this 'automated trading' than actually making money.
  7. Bullshit.

    Phishing for a free system, don't risk your system by disclosing. Next you'll know is some a$$h0le blasting on the internet. Don't believe me? Well it happend to us in spite of non-disclosure agreements etc.


  8. Please also PM me, with your system in details. Thanks!!! I'm serious.
  9. Haha, very nice. Why didn't I think of that? But in all seriousness I do agree with you that if it can be traded by hand it can be automated. That is something I didn't believe just a few years ago. However one caveat is, it MUST actually be a strategy..Impossible to automate random buy sells based on your gut. Unless, there is an underlining reason giving you these gut feelings...If there truly is an underlining strategy even if you don't necessarily know WHAT it is, it has the possibility to be automated.

    Very good idea to lure people into giving you strategies though.
  10. will someone "automate" a keen eye for chart patterns !

    now that would be something.....

    i repeat. a keen eye.
    #10     Jan 24, 2008