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I'll be slightly contrarian and say I don't think it's ridiculous to believe you can create an algorithm that produces income in publicly traded markets. Not that it's easy money, but that isn't the question. Generally if I've ever make a bad trade, it's because I was being human, not because I was following a set of rules and guidelines that I could codify into an algorithm.
Still, you (or a team) have to gain a good understanding of a few things before whatever you're doing is likely to work. For example, equity markets, the equities themselves, risk management, and algorithms. An excellent grasp of scientific methods would help a lot. And you would have to put in enough money for minimum account requirements plus some padding for losses early on.
Like any asset, your algorithm will have to be adjusted over time. It may even fail to perform under certain market conditions. In that case, you would need a more complex algorithm, or a set of different algorithms to fit various conditions. You'll also have to keep in mind that it might compete with other algorithms and traders; so figuring out how you develop a niche trade theory and either prevail over competition or mitigate or avoid it, is important.
Having/gaining knowledge and experience in the areas mentioned above would be key. Going in blind and assuming you'll make bank, on the other hand, could be one of those "valuable learning experiences." Quotation marks imply ironic tone of voice
Still, you (or a team) have to gain a good understanding of a few things before whatever you're doing is likely to work. For example, equity markets, the equities themselves, risk management, and algorithms. An excellent grasp of scientific methods would help a lot. And you would have to put in enough money for minimum account requirements plus some padding for losses early on.
Like any asset, your algorithm will have to be adjusted over time. It may even fail to perform under certain market conditions. In that case, you would need a more complex algorithm, or a set of different algorithms to fit various conditions. You'll also have to keep in mind that it might compete with other algorithms and traders; so figuring out how you develop a niche trade theory and either prevail over competition or mitigate or avoid it, is important.
Having/gaining knowledge and experience in the areas mentioned above would be key. Going in blind and assuming you'll make bank, on the other hand, could be one of those "valuable learning experiences." Quotation marks imply ironic tone of voice
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