The future of automated trading: round two - page 2

 

It would be good to have statistics to start with. How many individuals and how many organizations are on the market. How much money turnover for them and others. How many transactions are speculative (not depending on urgency) in nature (my subjective feelings, close to 100%) and the same picture on the iron, how much money is circulating on what iron. Although it is more interesting to solve the problem of "The future of auto-trading" in its pure form, provided that hardware, platform and ping are all the same

The figure about the growth of the share of robots to 50-70% in principle does not speak about anything except the automation of manual processes. In essence, robots are still the brain behind the creator, regardless of the volume of date grinded by the computer and no less important is the ratio of the amount of money

I think the market won't change much in the next 10 years, and robots will continue to eat pipsqueak as before.

 

In fact, every business has its advantages and disadvantages. The same applies to trading and in particular to manual and automated trading. Everyone just needs to choose what he or she feels comfortable with and where he or she feels the best result. The disadvantages that were described in automatic trading, they also apply to manual trading. And in fact, Forex trading, if you look at it from a philosophical point of view, is trading in air, in nothing. And that's why we have to take it much easier. If you like it - trade, if you do not like it - do not trade. There are a lot of other, more interesting things to do. ))))

 
Rosh:

If the question is specifically for me, I can only say one thing - the very nature of auto-trading will change. The appearance of MetaTrader 5 will once again make trading available to even more people, the cost of development will fall. It will not be the same as on some other forums, where they ask to write a simple Trailing Stop for 4000 rubles.

Consequently, the share of automated systems in trading will significantly increase, up to the point that the very nature of the market may change. What is now available to hundreds of traders will become available to thousands and tens of thousands, and the regularity found at the "quantum" level will be instantly eliminated by robots that will try to gain profit from it.

In short, that's it for me.


Not a very pleasant outlook, for us roboticists. Still, I think the cost of development should be kept at a good level, otherwise the philosophy of "programming for food", as they do now in the "work" section, will expect everyone who has the ability and experience to write PBX. After all, writing exchanges is not something to be swept away, so why is it much more profitable to work as a loader in the market than as an expert in MQL?
 

The more brains, dates and hardware we have, the further away we go from the spread in pips of profitability of an average trade.

In general, the more brains, dates and hardware we have, the further away we are from the spread in pips of profitability of an average transaction and who pushes the buttons and at what speed is the second question.

The other question is the automation of searching for axes, i.e. not following the algorithm given by man

 
C-4:

Still, I think development costs should be kept at a good level,
It's a futile exercise, the market decides everything.
 
Where's Timbo?
 

Как им может противостоять маленький инвестор с дохлым компьютером, медленной связью, дырявой историей и, в довершение ко всему, высокой комиссией? Да, возможно он мог бы побить многих людей-трейдеров. Но какое конкурентное преимущество он имеет против роботов?

Timbo, you've answered your own question - NOTHING. And even owning a "real terminal" won't fix anything, because, and I quote: "How can a small investor with a dead computer, a slow connection, a leaky history and, on top of that, a high commission, stand up to them"? Such a terminal on its own will clearly not be enough.

I think there is only one solution here, and it is very simple - not to compete with these scalpers in their element - the tick chart. Tick chart - for computing clusters, gigabit channels, minimal commission and many millions turnovers. On the larger timeframes (from D1 onwards) everything still works and is subject to fundamental trends. And it always will, because the market is one of the derivatives of our world, not an insane mathematical model, as many here think.

 

What is there to argue about?

  1. Autotrading has always been and always will be as long as the market exists.
  2. The nature of price movements changes all the time (non-stationarity). But we knew that a long time ago. The importance of trading systems that are able to adapt to the changing market is increasing.
  3. Individual traders always have been and always will be. It is clear that they can't compare with large organizations like Goldman Sachs with power of computers, the volume of available data, and the complexity of codes, but their profits are also several orders of magnitude smaller.
  4. To paraphrase Prival, genius ideas belong to individuals, not organizations. The theory of relativity was worked out by Einstein, not some physics institute.
  5. Thanks to timbo for posting a branch with a job board for autotrading professionals. Now I know that if I lose my main job, there will be an opportunity to look for it in some hedge fund or bank. I see the benefits of my hobby.
  6. Mql5 has become even more powerful and will be even better, if the developers consider my wishes :-) Every time I try to develop something on other platforms, I get frustrated with their instability and limitations. It would be nice if metaqoutes would extend their platform to stock market as well, my broker has such a platform it would be a shame to hang oneself.
 

А в чём тут собственно спор?

Timbo's basic message is: Robots have completely and unconditionally won the competition in the market. To win, a trader must have their own data centre, a gigabit channel with no commissions and a robot that would fight for every pip. We, the small and poor, cannot afford all that, so there is nothing to think about when it comes to making money on the exchange.

 
C-4:

Timbo's basic message is that robots have completely and unequivocally won the competition in the market. To win, a trader must have their own data centre, a gigabit channel with no commissions and a robot that would fight for every pip. We, the small and poor, cannot afford all that, so there is nothing to think about when it comes to making money on the stock market.

On the arbitrage market there is a lot of organizational and technical inefficiencies of the trading platforms. We the little ones have no access to this market, except arbitrage of curvature of tick oscillator of some DC. Otherwise, "won unconditionally" sounds very optimistic for robots.
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