algo trading is the domain of well capitalised instos,so competitive there are large buildings purchased then gutted
to house the latest hardware and software as close as possible to exchanges,why? to gain that millionth of a second advantage over there competitors.
currently it could be said we are in a bull market ,an ideal environment to make money out of the rise and fall,yes you can make money in falling stocks as well ,the difficult part
is making money out of borrowed money without the credit to cover.
the large instos they will gobble up your funds in a moment without pause.
after the gfc three former hedge fund managers entered the worlds rich list,the world contributed to their good fortune while the academics still postured on survival of the fittest the prevailing theory for under regulated markets.
things have changed ,there is more regulatory oversight,and there are real penalties for those who breach and get caught.
of course the gfc sent 1000s of hedge funds broke unable to cover and millions of investors with those funds went broke as well---- but you can make money out of algos,just be sure
you can beat those competing against you and dont over commit by borrowing.
Mr Buffett runs hedge positions,however it should be noted
Mr Buffett also holds enormous cash reserves,and Mr Buffett
i am lead to believe his personal fund was in cash or equivalent prior to the gfc.
you gotta now when to hold em and know when to fold them,approximately right is very good if you really wont to
make money--lets call that a long return based algo using the whole market as a gauge.
i am not Mr Buffett i am a very slow learner.
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