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by fauigerzigerk
1492 days ago
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>Suppose that I have a consistently profitable bot. What good does it do me to let you know about it? Two main reasons come to mind: First, you cannot know whether a particular algorithm (bot) will be consistently profitable in the future. It may lose everything it has ever won if the circumstances change (e.g quickly rising interest rates, war breaking out). There's risk involved. A service provider may prefer making software to taking market risk. Second, investing profitably without taking excessive risk requires far more capital than writing algorithms. The customers of a bot maker may be able to raise capital far more cheaply than the bot maker itself, e.g. by investing their personal savings. Whether a particular algorithm is profitable or not depends on the cost of capital. Please don't take this as an endorsement of algorithmic trading or of investing your money that way. It's certainly not how I personally invest my savings. I'm not a finance professional either. |
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