Algorithmic Trading has become a new phenomenon in the financial markets space. However, there is a huge amount of skepticism that exists around this subject, especially in 3rd world countries. Buying and Selling of stocks through computer algorithms is not a cup of tea for everyone.
The reason for this skepticism lies in the fact that Algo trading doesn’t involve a lot of human intervention. And we as human beings like to be ‘substantially involved’ in matters where the money is at stake.
The brighter side of the story is that there are numerous successful algo traders out there who are literally ruling the markets with the application of technology. And the count of such individuals is growing with each passing day
We have compiled some of the notable Algorithmic trading success stories that can boost your confidence and help you pursue this method of trading.
A Montreal Based Trader who doubles his Capital every 3 Years
Albert Mate, a Montreal based Algorithmic trader has outperformed the S&P500 returns for years now. His average yearly return is 23.5% which is way more the returns offered by any financial instrument. With this rate, he doubles his capital every 3 years
According to a statistic mentioned by Albert, 85% of portfolio managers aren’t able to beat the S&P500. That is a key figure to keep in mind.
Albert started his trading journey with scalping, and after learning the hard way during the 2000 bubble, he shifted to algorithmic trading. And this shift, according to him, is the biggest turning point in this trading journey. He has never looked back since then.
A Full-time Crypto Trader who makes Money while he sleeps
This algo trader who goes by the name ‘tripster202’ in Reddit, has been trading 6 figures USD capital through his Algorithmic system. He self-developed these systems using Python during his undergraduate college days.
He is currently unemployed but making full-time income through algo trading. Being a college student, he initially started trading with borrowed money but was soon able to pay back all his loans.
His success did not come overnight, rather he spent countless hours for days and weeks running tests and building mathematical models for his algorithmic systems.
An anonymous Options Trader who made $2.4 million in 28 minutes
Few years ago, an anonymous option trader made more than $2.4 million based on a single news wire in just 28 minutes. The trade had to do with reports that Intel is in talks to buy Altera.
This trader bought 300K OTM option of Altera for $0.35 each within 1 second of the announcement. He closed the trade when the call option was priced at $8.50, and thus collecting $2.4 million in 28 minutes.
This was a news-based trade, but the key here is that it is impossible to manually execute such a high-volume trade unless an Algorithmic system is involved. The same anonymous trader has been successful in executing many such high-volume scalping trades through his algorithmic systems.
An Algorithmic trading Prodigy who turned Millionaire in 3.5 Years
‘Manish Gupta’, a 19-year-old Algorithmic trading millionaire has been in limelight recently. He started his journey with manual rule-based trading and doubled his capital in less than a year. Soon after, he converted all his trading rules into algorithms and started automating them through Amibroker software.
With automation in place, he could focus on developing more strategies instead of being glued to the system screen during market hours. The noteworthy thing is, he turned 25K into 1 million in 3.5 years, which is still a dream for many traders.
We have captured Manish’s story in detail in this article.
A Trader cum Educator who earns Passive income through Algo Trading
Rajasthan, India born Nitesh Khandelwal with degrees from IIT and IIM is an algorithmic trader cum educator who successfully trades the markets supported by a team. Initially, he offered turnkey solutions to several institutions in India and a few abroad. But later decided to start his own trading firm rather than just consulting.
He has been consistently profitable for years now by dedicating just a few hours a week optimizing his trading system. Thanks to Algorithmic trading!
With nearly 76% of trading volume across all the exchanges in the world coming from Algorithmic traders it has become imperative to understand the beast. Most of the newbies entering the market generally have below questions:
- Is Algorithmic trading profitable?
- How much do Algo traders make?
- Is algo trading legal and safe?
- Who are the best Algorithmic traders?
We hope some of these Algorithmic trading success stories would have answered these questions for you. You may check out this comprehensive article on the best Algorithmic Trading Platforms to get started.