Crypto Trading

Algorithmic Trading on YouTube is Fake | Trading Strategies that Actually Work

Algorithmic Trading on YouTube is Fake | Trading Strategies that Actually Work

Algorithmic Trading on YouTube is Fake | Trading Strategies that Actually Work

Today we discuss the common misconceptions of retail traders regarding the algorithmic trading or more commonly termed ‘algo trading’. Here we dive into why finding alpha in today’s financial markets is non-trivial, and conflicts of interest present in financial markets.

Later in the video we discuss 3 trading strategies that are used as the foundation of most financial companies that participate in the financial markets. These strategies consistently make companies money and are the bedrock of companies providing financial services, or products in general.

Let’s aim to be pessimistic when people online promise that someone/anyone with a novice level of python experience can create an algo trading strategy that consistently makes money. I will endeavour to never give in to this fallacy and aim to point it out to my viewers on this channel.

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Video for Crypto Trading Strategies Reddit
Crypto Trading Strategies Reddit youtube video content

16 Comments

  1. Lame. You claim conflict of interest as the reason why algo strategies in YouTube are fake? Seriously, either you are ignorant to come up with such lame explanation or your title is just a click bait. Most algo strategies are coded by private individuals not working for the brokers. Name me which algo is from brokers? Provide a proof to support your claim. And even if you found 1 algo strategies provided by a broker, that doesn't mean ALL algo strategies on YouTube is fake.

  2. its exactly like losers selling institutional forex trading courses using mt4? like really? there is no superior courses ever. Banks, hedges use algos.

  3. Behind my name 🔝 🔝 he’s 📧 it's quite complex as a beginner and you ought to understand the market trends and different algorithm. The losses i incurred made me believe trading was actually a dead end not until I made 10 times on my trading capital in 3 weeks and with the market making large moves and the support and mentoring I got from Mr Kurt and he made me learn to read and understand the language of price action rather than relying on lagging indicators..

  4. Great video, but you didn't really mention anything about the "high frequency traders" from that non directional category. Their income solely depends on the price of the market, they don't earn anything from fee or any other factors. But according to the data only around <10% of em make any kind consistent income from their trades, even tho that's low, but if those 10% can be successful, then an algo can also be successful if it follows the same strategy and risk managements as of the successful traders. Lemme know if I'm wrong…

  5. I started backtesting some strategies with years of data on a 5m ohlcv timeframe. Got some strategies which make me around 800% ROI each year. And like each month almost the same amount of winning percentage.

    Still developing as a side project a real stable live trading bot to take these strategies into the practical world but I am very curious what you think about it? Would there be a high chance of this being over fitted for historical data or could it actually work and make profit because I backtested it with lots of data?

  6. The video is hard truth I guess for retail traders. But then in your view, do Retail traders have no hope? I have seen successful retail traders making good wealth? how to reconcile it? Thanks

  7. If you look at the most successful hedge fund manager, Jim Simon, who has outperformed the market with an annual return of 66,1% before fees for his medallion fund from 1988 – 2018, it clearly shows that it requires the brightest minds in the world of mathematics, computer science and physics. The point is that most retail traders don’t have the necessary skills to analyze the right data and the right amount of data in order to produce strategies that can make alpha. Of course, that’s just how I analyze the situation. But most retail traders should definitely not use basic algo strategies like SMA 50 crossing the SMA 100

  8. Got it – don't bother chasing alpha. Is there a way as a retail investor that we can reduce beta with minimal impact to our 0 alpha? Or are there no good, easily accessible beta-reduction strategies either?

  9. Misleading title. You only spoke of how they make money from us not on how we can make money from them or real “trading strategies that actually work.” We already know that their business model works, otherwise it wouldn’t exist…this video has great info though, regardless of relevancy to its title.

  10. Can you show market making techniques? Crypto is now an asset that the retail can go about doing market making, e.g. hummingbot

  11. Does the analogy really hold? Once the big miners have come through, there's always scraps left for the prospectors. And a mining company's scraps are a prospector's fortune.

  12. what a hell i spent 22 minutes listenning to you but in the end you did not reveal us the next multibaggers, i'am so depressed.

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