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Can Algo-Trading Substitute Day Trading?

Day trading tends to be a retail trader’s gateway into the trading world. It has a low barrier to entry and doesn’t require significant upfront capital. But that also...
Can Algo-Trading Substitute Day Trading? Can Algo-Trading Substitute Day Trading?

Day trading tends to be a retail trader’s gateway into the trading world. It has a low barrier to entry and doesn’t require significant upfront capital. But that also means it’s easy for new traders to lose their hard-earned cash to the market due to technical and fundamental knowledge of how the market works.

Those who spend the time learning and honing their skills start seeing consistent gains and end up choosing to stick with day-trading. But then there are logistical barriers, such as a lack of time. As a day trader, you are entering and closing positions within the same day. This begs regular time investment during market hours, which can be difficult since most traders have a standard 9 to 5 job that provides their primary source of income.

Day trading isn't like long-term investments where you invest in a company and watch your portfolio grow slowly over the years. In day trading, minute-to-minute fluctuations of the market matter. You need to constantly monitor price moments, trends, news, and other variables that can affect markets, sectors, and specific stocks, all of which culminate into your portfolio’s health.

Logistical barriers like these have pushed day traders towards algo-trading — using algorithms and software, such as automated trading bots, to conduct automated trades. But, algo-trading isn’t without flaws.

The Problems of Algo-Trading
Algo-trading has high entry barriers that go beyond being capital intensive. For example, creating algorithms typically requires knowing programming languages, such as C++, Python, and JAVA. Users also need to access multiple sources of institutional data (usually locked behind paywalls) to test the validity of their algorithms.

Then the users need to find platforms that support backtesting and paper trading techniques to run tests for assessing the algorithm's viability. Lastly, users need to be familiar with various data science concepts to analyze test results correctly. These are just a few hurdles that those interested in algo-trading face.

Also, most people approach algo-trading with wrong expectations — like a button they can push to beat S&P 500. This is an erroneous expectation. Algo-trading’s true purpose is to give you a vessel to experiment with various automated strategies, then Live trade with the best ones at a speed and precision that manual traders cannot match.

There’s a need for algo-trading platforms that removes barriers and boosts technical accessibility for regular traders.

Breaking Equity, for example, offers just that. It is a user-friendly platform that allows users to create, backtest and paper trade with their algorithms without knowing how to code. It aims to make algo-trading technology simpler and accessible by eliminating the mentioned barriers.

Users can simply choose a strategy from its vast library or create their own. Then, they can backtest that strategy against 15 years of institutional-grade historical data and further verify their strategy’s efficacy in current market conditions through paper trading.

Once the algo-strategy’s performance gets validated, users can then Live trade with it by connecting it to their existing broker through one-click integration. Once deployed, the trading-algo will execute buy and sell actions automatically, adhering to the rules and risk-control metrics set by the user. Although automated trading traditionally comes with numerous barriers that suppress its availability in the retail community, things are changing. Day Traders can use platforms like Breaking Equity to optimize their trading activities, thereby increasing their odds of seeing profits. Still, trading requires some level of human intelligence, so solutions like trading robots shouldn’t be considered perfect.

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18-09-2021 02:10:52 (UTC+7)

EUR/USD

1.1730

-0.0034 (-0.29%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (8)

Sell (0)

EUR/USD

1.1730

-0.0034 (-0.29%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (8)

Sell (0)

GBP/USD

1.3740

-0.0048 (-0.35%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (7)

USD/JPY

109.92

+0.21 (+0.20%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (6)

AUD/USD

0.7275

-0.0014 (-0.20%)

Summary

Neutral

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (3)

Sell (3)

USD/CAD

1.2742

+0.0061 (+0.48%)

Summary

Neutral

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (7)

Sell (2)

EUR/JPY

128.93

-0.12 (-0.09%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (6)

EUR/CHF

1.0938

+0.0027 (+0.24%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (1)

Gold Futures

1,754.15

-2.55 (-0.15%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (8)

Sell (0)

Silver Futures

22.450

-0.344 (-1.51%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (9)

Sell (1)

Copper Futures

4.2460

-0.0355 (-0.83%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (8)

Crude Oil WTI Futures

72.08

-0.48 (-0.66%)

Summary

Neutral

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (4)

Sell (4)

Brent Oil Futures

75.44

-0.23 (-0.30%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (3)

Sell (6)

Natural Gas Futures

5.067

-0.268 (-5.02%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (2)

Sell (6)

US Coffee C Futures

186.75

-1.40 (-0.74%)

Summary

Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (5)

Sell (3)

Euro Stoxx 50

4,130.84

-39.03 (-0.94%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (7)

Sell (2)

S&P 500

4,434.36

-39.40 (-0.88%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (2)

Sell (5)

DAX

15,490.17

-161.58 (-1.03%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (2)

FTSE 100

6,963.64

-63.84 (-0.91%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (8)

Sell (1)

Hang Seng

24,920.76

+252.91 (+1.03%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (0)

US Small Cap 2000

2,227.00

-9.28 (-0.42%)

Summary

Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (3)

Sell (4)

IBEX 35

8,760.90

+27.20 (+0.31%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

BASF SE NA O.N.

63.085

-2.125 (-3.26%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

Bayer AG NA

45.07

-0.57 (-1.25%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Allianz SE VNA O.N.

190.23

-2.24 (-1.16%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Adidas AG

281.60

-3.70 (-1.30%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (6)

Deutsche Lufthansa AG

8.210

+0.209 (+2.61%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (1)

Siemens AG Class N

148.76

-1.28 (-0.85%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

Deutsche Bank AG

11.080

-0.025 (-0.23%)

Summary

↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (0)

Sell (8)

 EUR/USD1.1730↑ Buy
 GBP/USD1.3740↑ Sell
 USD/JPY109.92↑ Sell
 AUD/USD0.7275Neutral
 USD/CAD1.2742Neutral
 EUR/JPY128.93↑ Sell
 EUR/CHF1.0938↑ Buy
 Gold1,754.15↑ Buy
 Silver22.450↑ Buy
 Copper4.2460↑ Sell
 Crude Oil WTI72.08Neutral
 Brent Oil75.44Sell
 Natural Gas5.067↑ Sell
 US Coffee C186.75Buy
 Euro Stoxx 504,130.84↑ Buy
 S&P 5004,434.36↑ Sell
 DAX15,490.17↑ Buy
 FTSE 1006,963.64↑ Buy
 Hang Seng24,920.76↑ Buy
 Small Cap 20002,227.00Sell
 IBEX 358,760.90↑ Sell
 BASF63.085↑ Sell
 Bayer45.07↑ Sell
 Allianz190.23↑ Sell
 Adidas281.60↑ Sell
 Lufthansa8.210Neutral
 Siemens AG148.76↑ Sell
 Deutsche Bank AG11.080↑ Sell
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,600/ 5,665
(0/ 0) # 809
SJC HCM5,600/ 5,665
(0/ 0) # 810
SJC Hanoi5,600/ 5,667
(0/ 0) # 812
SJC Danang5,600/ 5,667
(0/ 0) # 812
SJC Nhatrang5,600/ 5,667
(0/ 0) # 812
SJC Cantho5,600/ 5,667
(0/ 0) # 812
Cập nhật 18-09-2021 02:10:54
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,754.01-0.13-0.01%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2149021910
RON 95-II,III2139021810
E5 RON 92-II2014020540
DO 0.05S1602016340
DO 0,001S-V1637016690
Dầu hỏa1508015380
ↂ Giá dầu thô thế giới
WTI$72.09-0.67-0.93%
Brent$75.46-0.67-0.89%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.640,0022.870,00
EUR26.118,3927.477,69
GBP30.621,6331.901,01
JPY202,13213,83
KRW16,7120,34
Cập nhật lúc 18:53:14 17/09/2021
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