Maybe I should start a fund. Broke Ass Capital. Here's our performance so far. Anyone interested in investing in this broke ass fund???
"Since its inception, Investtech Invest has crushed the stock market and can show a return of 421 per cent, which is 220 percentage points better than the benchmark index." 421% growth gives a compounding rate of return of 17,95% a year.
You asked for a fund ? I am triple as good based on your risk and return figures over the same time period. But I would never imagine having my own fund. Just trading for myself and compound there. With scaling up you usually get to the limits by far earlier on the max. trading size what is possible to handle. What products did you trade by the way for that and how long you spent the time in the average trade ?
Thanks for all the replies on here. Not many who have replied say that they have an automated system that works in the long run. Of the few that have, most do not claim big profits or any kind of get-rich-quick scheme. In its way that is refreshing, because it seems to me to indicate that it may be possible, but it is hard and the rewards are not enormous. Makes a change from the average youtube video about day trading.
There are many pitfalls for a fully automated trading system. (For example you are trading stocks and you need good fills, then you also need to consider bid/ask volume and level 2 data, which makes it complicated for automated trading execution. There are many other pitfalls too, like hardware and software stability, the problems with software updates especially on windows machines and so on. Sometime you do not get execution done over the broker or confirmations are missing, so you need to double check your positions anytime too. Then there are special market conditions like on high volatility situations where you automation could fail too. Not to speak on (costly) glitches. This is only a small example what can go wrong on a fully automation of a trading strategy.) If I were you I would start with some rules from your actual market knowledge. Over the time these rules get organized in a more systematic manner so over a longer time period of trading based on your rules you could also automate your trading to save some time. If you are not sure about your rules just give you some more time on your trading. You will get ideas to finetune your rules for sure over the time when you are trading and observing the markets. So it is only a matter of trading for a longer time period until you have clear and well defined rules. And every trader should have some rules, even (s)he is only a discretionary trader. And trading without any rules should not be done at all (in my opinion). One more thing. If you think with a fully automation you could save a lot of time, this is not the case (in my eyes). Because you need to put in so much work and then you need to watch and babysit it, so that with a half automation you could save a lot of more time. So you need to find your own trade-off when the reason of automation for you is to save some time. Also do not forget you need to observe the markets too, so that you can gain market knowledge. Because it does not work that you are just programming and that's it. You need to spend some screentime too, and that must be continous over the time, so you can get additional ideas. Also markets do change over time so you need to adapt too. So in the end there is nothing like a once fully automation and there you are done for the rest of your life. That won't work. So be careful what you are asking here. Do not get wrong impressions. For most traders a half automation would save the most time. You only need very clear and organized rules. Then you only need to be discplined and patient for the right trading setups. And with half automation there is no need to sit in front of the screens all the time. So that would save a lot of time, giving you free time to spend your valuable time on other activities. But usually there is a long way until then. Especially if you want to be consistent profitable. So in the end a fully automation makes the most sense if you cannot react that fast as a human, especially on high frequency trading and you have no other choice than fully automation. In all other examples I think half automation is the ultimate time saver already. That is my opinion here. There is also thing I do not see that it can be solved via programming and there fore fully automation the trading process. That is intuition. Myself I had to learn over the past half year some things which I did not know before in that clarity. So any trading automation would result in a lot of extra programming, which would cost also a lot of time. You cannot program any software having human intuition. But sometimes it is important to stay out of the markets or reducing your risk without knowing all the details in beforehand. So there is no easy way at all to fully automate trading in any way, as the markets are totally dynamic and that cannot be coded in that way (so far). Sometimes you just need a "nose" for the markets or a "lucky hand" (as intuition), which cannot be programmed on a fully automated trading system. So one thing is for sure, you need to adapt over the time (and any programming code does not rewrite itself based on changes because of dynamic markets as I know). [And I have not seen an intelligent AI on trading or heard of so far. There is lot of garbage here too.]
That is right. You are not going to get quick rich with consistently profitable automated trading. What you can do is manage in the best possible way wealth that you already have. The endeavor of serious automated trading is simply too big and articulated for little $$$. But it makes a lot of sense with good funds. There is an obvious limit to the $$$ that can be legitimately extracted from the market with consistent algorithmic methods. And the reasons for it become quite apparent when you actually do it every day for a long time. [Just beware of ridiculously large claims, as they are either scammers or they are doing "other activities" (money laundering, Ponzi's, etc.) simply "masked" by trading activity.
Tl;dr But from the glimpse I took, you're referring to fault tolerance. It's a basic requirement in programming