Anyone tried algorithmic trading software?

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I got an email recently with an advert for an algorithmic trading software program. Yes, the advert was full of stories about spectacular success, etc., but it led me to wonder if there is any substance to these software programs. So, my question to the group is if anyone has tried or has firsthand experience with this kind of program.

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Asked on June 22, 2024 9:44 am
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Most retail investors would be better off avoiding any sort of trading strategies, whether operated by themselves or through a piece of software.

These software companies often pick and choose individual successes while ignoring multiple failures.

The vast majority (90-95%) of investor who attempt to trade lose money. This means you've got a 1 in 10 shot at best (likely closer to 1 in 20) of just breaking even or profiting. I've actually witnessed more in-depth studies that suggest only around 1.5% of traders actually make money over the long-term.

Many of these platforms promise a quick path to riches, which is a very easy thing to market.

I cannot comment on any particular trading system or platform as I haven't used them myself. But, my cautions towards retail investors is one that is backed by a lot of historical data.

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Posted by Dan Kent
Answered on June 23, 2024 9:15 am