High Probability Trading Strategies – Client Question & Concern

We wanted to share this question and answer with everyone because it may help you also.

– Question from Dan about our High Probability Trading Strategies:


How are you doing today? Congratulations on your article in Future Magazine. Hopefully this will help you and your business grow.

My account has fallen below $50,000 due to the loss of the last trade. Will this exclude my account from trading?

I’m hopeful the market’s coming pullback will enable the Algo to start trading a little more frequently. I would rather not trade, than lose money trading, or take a poor trade in hopes of possibly making money.

Please let me know about the account. Thank you for opportunity to trade and your service.


– Answer from AlgoTrades/Chris:

High Probability Trading StrategiesMorning Dan!

If I recall this is your first trade with AlgoTrades. We recommend $50,000 to start to give us a large buffer if the first couple trades happen to be losers. We have about $10,000 buffer just to be safe.

Remember, you need to trade to make money, and not all trades will be winners. This is just a part of trading. Our trading system is a robot, and does not trade because it feels like it needs to. It is a quantitative trading strategy that uses mathematical computations and statistics to power its decisions and money management.

Also keep in mind, that 90% of investors and traders enter and exit trades at the wrong time and is one of the reasons individuals lose money over and over again with their trades. The AlgoTrades algorithmic trading system is very good at market timing and only uses our high probability trading strategies. So when our system enters or exits a trade, it will likely be during a time when you are very uncomfortable with the trade being taken.

“Our High Probability Trading Strategies are to Buy Into Fear, Sell Into Greed” 

Also, this current trade thus far has only had a max draw-down of $300. This is a very little amount. Also as of this morning the trade is positive and looking as thought the SP500 could make a new high in the next week if all goes well.

Chris Vermeulen