Tag Archives: black boxes

Trading robots and black boxes could make you lose BIG money

Trading robots and black box technology could make you lose BIG money

As the world understands that algorithmic and automated trading is the way of the future to stay in this business, many are still pretty well lazy to stay ahead of the game. As I listen to, read more, and talk to human based traders, they are still tied to using some black box software technology to make them think they’re using algorithms. This is so far from the truth.

See this article to see what I think of a particular set of online services

See my new standard way of answering questions on the software trading robots

I mean seriously, these are expensive and secretive technologies that offer no credibility for true success while trading in the markets. Even if that was the case, you’re still behind the eight ball when these automated trading solutions work against you or expire as the market conditions change. After talking to a recent local Meetup member, he followed some automated trading solution that was great until he pretty well lost his house. Lucky for him, he was still young enough to be able to rebound from these destructive losses.

So what am I saying here?

You need to understand, when it comes to betting your entire portfolio which includes your hard earned money, you need to be really careful on how you deploy it when it comes to risk taking with your trading. This is why I always push to understand the “Under the Hood” mentality in understanding the source code that does your automated trading. Not only that, you need to take an unfortunate skeptical look with full paranoia to own and control your source code. This does not mean, you pass control over to some cloud trading solution. Do you really trust that they will not steal your highly prized intellectual property called your trading idea?

Why do you think I created this ‘Indie Algo Trading Business with Python’ course series?

You know I have talked about it for many months now. You know we’re in our third week of this “Infrastructure Building Blocks” phase. The question you need to ask yourself is: why are you missing out?

Just remember all of the above that I mentioned to jumpstart your learning with full automation where you own and control the outcome. Also remember, this is the only place anywhere you can learn this. Also remember that Python is being taught to nine-year-old so anyone can learn it. The only thing holding you back is your inner drive but we have sent emails on that in the past as well.

If you’re interested in learning all this go here

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Thanks for reading


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!

Flash trading, black boxes, high frequency trading, HFT, algo based trading system causes that 600 drop in the market

Flash trading, black boxes, high frequency trading, HFT, algo based trading system causes that 600 drop in the market

For those that don’t klnow, high frequency trading has lately taken the stock markets by storm. It is quite astonishing in how you read that over seventy five percent of all trading is done by one of these robots. It was predicted over five years ago. Also, do you ever wonder why the stock market has been on a real tear up lately? Not many people will openly talk about it in the mainstream media, but this is what is driving the markets.

When you hear about investment banks like Goldman Sachs reaching over $150 million days in profit (not a typo!), what do you think is driving it? Goldman Sachs did not hire thousands of trained monkeys to do trading for them. It was not done by ghosts. It was simply (well not so simply) run by algo based robots which trade on trends. They have been programmed to get in out and out of trades within 10 milli seconds. They can also execute multi session trades in the thousands. This technology is what spawned this site. The learning of it is quite complex but we are working on an infrastructure that could match the biggest of any big investment bank. This is also how the big hedge fund companies trade. As said, we aready to match them.

So what are our limitations? Well, we don’t have the capital scale or hardware budget to match their systems that execute huge flash trades in the thousands. Reports have come in with a 1000x performance level and near true ZERO latency. Could we get there? Well….one day.

By the time that happens, they will be on their way to spending millions on these FPGA hardware based systems where they will be able to blend market news capture, economic sentiment via feeds that will be fed into these huge super grid computers. They will cost millions which us little guys cannot afford. Well maybe if we do real well. I mean real well on a Warren Buffet level
So what do you think caused that 600 point drop again? Think again. Oh yeah, the government won’t be able to regulate it. Who do you think brings in the liquidity into the markets to make them gel? Now who’s your daddy??

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!