Quant opinion: AlgoTrading Tool or Magic Box?

(Last Updated On: September 28, 2011)

Quant opinion: AlgoTrading Tool or Magic Box?

Frequently the automatic trading software is viewed as magic box to solve all trading problems and cash making machine, instead of a tool to help in trading. What do you think? Is it an extended hand for trading or an Independent machine for cash generation?


It can be very well a totally independent machine which can produce wealth, especially if good risk capital is available.

However, it can often be made work better, by allowing discretionary intervention, but in very specific areas (where the user can’t really spoil the base trading mechanism, but can instead provide constructive input).


All envisioned trading problems can’t be solved by algo tool or machine. We might require hybrid solution where intelligent algo can run on embeded hardware. Algo code can fuse in ROM and put into a electronic board.


In my personal view, I look the trading software as an helping tool for taking decision rather than independent machine as described and many others view it. Would like to get different thoughts on this.

For me this is like driving cars. Can we trust auto driven cars? Where you will sit and key-in the destination point and the auto-driven car takes you to the destination. Yes, we can trust, but the trust comes with the risk of life. OR do we prefer the best in class car that obey our orders through steering, accelerator & break? We drive it and control it.

I agree there is no right or wrong answers… It’s just individual views.


Opinions clearly depend on paste experiences. Try this [free]:


i am pretty sure you will experience yourself what i meant. You will see it creating wealth by itself. Clearly, the human can contribute in many ways (folio selection, discretionary bounds, etc), and different degrees of intervention.



Agree, all our opinions come from past experience. Thanks for additional details.



NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Subscribe For Latest Updates

Sign up to best of business news, informed analysis and opinions on what matters to you.
Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Scroll to Top