An interesting article about algorithmic trading I’ve found here.
An excerpts from it:
…………..Recent research from the Tabb Group indicated that in the USA, perhaps 60% of Investment Managers use or experiment with algorithmic trading……………
The majority of many friends and prospective clients i’ve talked with still believe that algorithmic trading is just a new, un-tested, un-reliable, too-risky approach to trade the market. The majority of retail investors still hold a strong believe that trading must be done using technical analysis that needs imagination to draw the trendline, need to have a sensitive-trained eye to spot the support/resistence levels, must use feelings in some extent, that the skill of an experienced trader is too complex to be programmed into a computer program, etc etc etc.. All these have resulted in a popular believe that algorithmic trading is an impossible approach for profitable trading, and it’s only for daydreamers.
Well, I feel sorry for them, feel sad for them, but since it is still –and will still be– the nature of the statistic is 95% of the players are losers, so let them be. They want to do this discretionary, well equipped with all those technical analysis mumbo-jumbo, and with all those fundamental analysis bullshit, so let they get what they deserve to get.
Recent research from the Tabb Group indicated that in the USA, perhaps 60% of Investment Managers use or experiment with algorithmic trading. I believe that they have a better chance to be belong to the winners group than all the rest of the crowd that I feel sorry about.