If you’re not at least semi-automated, then you will struggle to get funding…
We all the knew what the future held for traders in all markets, I’m just flabbergasted to realise that the future is already here.
I’ve been hearing the same arguments from institutional investors for the last 6 months- ‘if the trader is unable to logically explain what they do in such a way that can be systematised, then I’m certainly not going to fund them!’. They aren’t talking about black boxes either. They want trading methodologies and risk management processes to be largely automated. The trader can then adjust bias and other parameters as often as they see fit.
Of course the top class discretionary trader will still get backing, especially the ex-institutional trader who is skilled at managing larger risk and liquidity. But these are a dying breed.
For the younger, self-taught trader, being able to put most of the processes into a system takes care of one big box-ticks for the investor; it takes trade size and psychology out of the equation to a large degree.
By the way, when you are building your trading system, don’t worry too much about finding the right developer, they are relatively commonplace. What you really need to find is the expert Business Analyst who will help to extract your trading logic from your traders’ brain and into language that any developer can understand. That’s where you need to make the proper investment!