The Online Investing AI Blog

Have you ever met someone and asked what they did for work, and received the following response?

I trade for a living.

I don’t mean a stock broker or mutual fund salesperson that siphons money off other people’s accounts. I mean someone who makes enough money to live by buying and selling stocks, options or Forex. They don’t need a job and make money from guessing which way a certain asset is going to go.

I have met a few people like this, but I think that they are few and far between. It takes time, discipline and effort to become a successful trader. Anyone can do it. The challenge is that most people either give up or never try. We have to find the right teachers, books or seminars. And consistently improve our trading skills.

What if there were a way to successfully trade without having to go through all the work? A hedge fund is a example of this. However, there are a few problems of hedge funds. First, they are run by other people, so there is a risk that they will change they way they make decisions. They may have been successful in the past, but one day they could trade with new strategies and lose all the money.

Another problem with hedge funds is that you really don’t know how risk is managed. They may have been successful for years, but without adequately managing risk the fund could lose everything in a matter of days. It has happened before and will happen again.

So, the problem with hedge funds is that you really don’t have control. We believe that Automated Trading is a good solution. Automated Trading systems execute very specific trading rules and can be very consistent. We get the benefits of trading without having to do the work ourselves. And we are always in control. We can turn off a trading system any time we want to. Or, switch to another one if we feel that it will perform better.

Automated Trading systems are like the cruise control system on a car. When you turn it on, it keeps the car going at the same speed. It will not protect you from crashing into another car or driving off the road. But, it does take over some of the details of driving. And, you can turn it off anytime you want.

Automated Trading systems are new and untested to most people. But we think that a revolution is around the corner. A time when anyone will be able to benefit from high returns and low risk generated by these systems. And, they will be in control of what happens to their account.