One of the biggest challenges of automated trading is to face losing effectiveness of trading strategy over time. As was discussed in previous article Why is systematic approach important for automated trading, the plan for managing risks is very important. One of these risks is losing effectiveness of automated trading strategy and his algorithms.
Automated trading strategy and his algorithms goes through the workflow. This contains development process with many stress tests and modeling. After this process, automated trading strategy is ready to use. In this point, many developers and traders as well, has different point of view on the next managing. Most of them want to see their algorithms in automated trading systems to make a profit as long as possible.
