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Joseph Russo

Joseph Russo

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating…

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Algo-Trading for the Retail Trader/Investor

I'd like to share with readers a rather interesting CNBC segment on maintaining a level playing field for the average retail trader/investor.

Maria Bartiromo introduced the story (see CNBC video below) by Bob Pisani, which centers on a company called Equametrics, who specialize in bringing the power of automated trading used by banks and hedge funds to the retail investor.

Although I can attest to the success that comes with the discipline associated with automating a proven trading/investment strategy, I do not believe the average retail trader/investor has the time or tenacity to develop and implement such strategies successfully.

 

Despite being a huge proponent of electronic trading, do be advised that the custom algorithms that banks and hedge funds employ are not the off-the-shelf indicators that are commonly available by Equametrics or any other automated trading platform.

Basic off-the-shelf indicators like the MACD or 200-day Moving Average are great tools to garnish a quick snapshot of the current state of the market however; they fail miserably when translated into an automated/electronic trading strategy.

Trust me, after more than 5,000 hours of time, research, and real-time experience in developing, monitoring, and using automated trading strategies, I should know.

Insofar as advice for the average retail trader/investor considering Equametrics, I would provide the following:

  • Canned (off-the-shelf) indicators do not work as automated investing strategies.

  • Standard indicator inputs typically need modifications in combination with other input variables or custom indicators in order to produce profitable strategies over the long haul.

  • The learning curve is enormous and impractical for the average retail trader/investor to undertake.

  • At $99 - $250 per month for an education/execution platform is rather expensive, and for the majority, a losing proposition for all but the most tenacious and wealthy retail investors with plenty of time and money to blow.

  • If you are committed and passionate about developing and using automated trading strategies, read some books and do a fair amount of due diligence prior to jumping right into shark infested waters.

  • If you wish to gain the benefits of a disciplined electronic trading or investment strategy, find or follow one that has a proven and verifiable record of accomplishment.

Using a proven long-term algorithm for the S&P 500, Gold, and Silver markets, we are virtually giving away an effective and simple solution for the average retail investor to grow and safeguard their nest eggs.

If you are not sure what kind of trader/investor you are, click here to find out which of our electronic trading-alert services might suite you best.

 

For additional information and verified performance statistics, click here, or here.

 

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