Over 80% of FX-related investments are going to partly-systematic traders- sad but true
In the institutional world the number is even higher than this, but this number is skewed by the fact that the really big hedge funds ($10 billion+) are almost exclusively Algos.
In the developing trader space, we tend to see a large number of smaller investors and traders diversified across every possible strategy. What does seem to be a recurring theme is that investors typically like to see at least a partly systematic strategy. This gives them more peace of mind it seems. Can’t say that I agree with them that a machine is safer than a trustworthy and competent person, but that’s the world we live in. I think the main reason is that the investment decision-maker can more easily justify their decisions if backing a system rather than a person.
My advice is that if you are planning a career as a professional trader then you should look to systematise at least the risk management part of your trading processes. This will give investors some reassurance that you are less likely to go ‘rogue’.
(If you need some guidance on how to go about systematising your processes, especially if you’re on MT4 or MT5, drop me a note and I’ll show you where to start).