Black box investing is a quantitative trading that uses a computer and a pre-programmed logical algorithm to generate the buying and selling points of the market.
Will quantitative trading systems take over the future trading of the marketplace or fizzle out?
The answer to the question is positively a yes. They are here to stay and have the potential to grow exponentially offering complete assistance to large financial markets. However, at this point the situation is not alarming.
Although the high-frequency trading dominates the current transactions and trades, catching up to the use of the black box trading by the individuals will require another five years. Over 95% of the investors lose their money due to lack of skill and discipline in the trading arena. These people will use the automated system to avoid emotional damages that have a greater impact on the returns.
Presently, a handful of sites are offering the ability to build customized black box trading system. All the options are available on the website, and the user will use the drag and drop technology to create an effective quantitative trading strategy. Such a step requires zero programming skills. However, the under-educated trading individuals will experience a setback due to lack of experience in dealing with the trading terminology, techniques, money management and background functioning of the trading system.
There is a high possibility that these individuals look at different results when they use a thoroughly back tested application. It is because the individual investor does not possess the knowledge about the construction of the black box trading system. Additionally, it is also imperative to carry out testing and executing to ensure that the futures trading strategy functions efficiently in a live session. Not all the trading systems in the market are capable of delivering fruitful results went backtested using the data point and the given time frame.
The primary benefit of the black box trading is avoiding human intervention and error. Additionally, the algorithm is capable of performing calculations and analysis at a faster rate, which is impossible for a human being. For example, the algorithm would consume a few minutes of time to analyze and calculate millions of data input and arrive at an appropriate decision.
Apart from calculations and execution, the quantitative trading system, never misses an opportunity for collecting the data or skips a trade because of the human error. Furthermore, it eliminates human emotion, which is an essential element in wrong decision-making. Therefore, the trading systems function efficiently and consistently the deliver quantifiable returns, in the long run.
Algo Trades created sustainable quantitative trading systems that are capable of generating creates, managing positions and producing profits. The currently running trading system uses the S&P 500 index strategy, which with the help of the preprogrammed algorithm provides the buying and selling orders.
Your search for a sustainable black box trading ends here. The quantitative trading from Algo Trades is the right solution for all your trading needs.