Taming the market with the robots
We have been closely watching the Crypto Currencies market if you possibly could call it that, with all the fake data, fraud, and related problems. One thing shines – it is not so unique of FX, commodities, futures, or stocks. Market dynamics are market dynamics. And as most readers with this fine site will already know – nearly all traders lose. There’s been analysis done with this, everyone knows how this ends. A few early investors produce a bundle and thousands or millions even are left holding the bag. From one perspective, a bubble is a lot like a ponzi scheme. In MLM, there are several who break the bank – the founders.
If you’re not the founder – how do you know which Crypto will likely be the following Bitcoin? You seriously don’t. You have no clue. You can turn to Korea and do every one of the research you would like, the reality is that no-one can start to see the future as well as a top analyst might be wrong sometimes.
Quant traders have the identical doctrine all of them share – they may be smart enough to learn how stupid they may be. They know their particular flaws and they endure a greater power- that’s Artificial Intelligence.
Computing power is now so massive that it is likely that you can now off their home office create a brilliant trading plan that does well. Naturally, much like the laws of market dynamics, you can even develop a robot that’s worth exactly zero – a big pile of crap. When a quant makes an algorithm it’s either priceless or worthless. If it works, he’s effectively created a income generating machine. If this doesn’t happen work, there isn’t a value to anyone even if it’s just academics.
So how do you determine what method works, how to construct a working bot or get one? There are obvious conflicts of interest in those that sell bots. The internet has become covered with good marketeers, while profitable quants mostly keep their ways of themselves. Selling an item, and trading a robot, are very 2 different skills.
Crypto up to now has shown similar to most markets: impossible to trade.
Although many are kicking themselves because of not buying and holding, Let me tell you like a trader and that i speak for several space that there are not a way I would also have the patience to take a seat on the hugely profitable position for several years as the price goes parabolic.
That is why quants develop and trade algorithms – picking entries and exits can prove to be brain-destroying. There are dangers and risks with robots too naturally, but you are of the different nature.
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