Excuse my ignorance !
I have seen traders complaining algo trading makes life harder for retail traders.
yeah it may induce flash crashes, but isn't that cool that day traders can pounce on!
yeah it may induce more volatility and whipsaws, can't we avoid that simply by moving a time frame up or adapting a range based strategy within the current time frame (where whipsaw is happening?)
what's the big deal? I may be missing some point, do help me out !
other side of the coin, what the heck are you going to do, if you have an algorithmic platform available to you?
top traders (say Jessy Livermore) did pretty fine without algos and usually systems trading guys earn their money through arbitrage strategies which is impossible for retail traders. Its a well known fact, developing a winning algorithm for all seasons is almost impossible, why do traders think having algo trading capability in their arsenal can make a difference to them !???
I understand algos are useful in arbitrage strategies, have you ever seen guys making money (in US or somewhere) with algos in non arbitrage strategies consistently?
I have seen traders complaining algo trading makes life harder for retail traders.
yeah it may induce flash crashes, but isn't that cool that day traders can pounce on!
yeah it may induce more volatility and whipsaws, can't we avoid that simply by moving a time frame up or adapting a range based strategy within the current time frame (where whipsaw is happening?)
what's the big deal? I may be missing some point, do help me out !
other side of the coin, what the heck are you going to do, if you have an algorithmic platform available to you?
top traders (say Jessy Livermore) did pretty fine without algos and usually systems trading guys earn their money through arbitrage strategies which is impossible for retail traders. Its a well known fact, developing a winning algorithm for all seasons is almost impossible, why do traders think having algo trading capability in their arsenal can make a difference to them !???
I understand algos are useful in arbitrage strategies, have you ever seen guys making money (in US or somewhere) with algos in non arbitrage strategies consistently?