Is creating a stock algorithm/deep learning to trade stocks considered millionaire Fastlane?

[Stock Market]

I would like to know if creating a stock algorithm/deep learning is considered a Fastlane path to wealth.

 

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[Kal-El1998]

I would like to know if creating a stock algorithm/deep learning is considered a Fastlane path to wealth.

Potentially...but this will bring more headaches than anything else.

For example algorithms always change. In other words...how long can you keep your clients happy before everything turns upside down?

Sure you could hire everything out, but that'd be expensive, and again, sooner or later...the algorithms will catch up to you and your customers.

 

[Stock Market]

Potentially...but this will bring more headaches than anything else.

For example algorithms always change. In other words...how long can you keep your clients happy before everything turns upside down?

Sure you could hire everything out, but that'd be expensive, and again, sooner or later...the algorithms will catch up to you and your customers.

The algorithm is for making predictions on the stock market.

 

[Rabby]

I don't see why it wouldn't be, as long as the venture scores well according to CENTS. You have to ask the questions like whether you can exert some form of control, whether there's enough barrier to entry, etc. Are you using it for yourself, renting it to others, selling it, etc? The same basic idea can meet the CENTS criteria or not, depending on what you do with it.

 

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[Kal-El1998]

The algorithm is for making predictions on the stock market.

Right, I get that...but things will always shift. The market is highly volatile and constantly changing.

I heard a story a while back from one of my friends at college that his cousin had made something similar to what you're discussing. He was able to make really solid gains for about 6 months because of it. I think the total profit he had was somewhere around 17k. But it started taking a dive, his algorithm with the predictions just wasn't working anymore. He didn't lose much before shutting it down and moving on to something else, but still...

Personally I just don't have the stomach for a risk like that. So maybe I'm just a wimp lmaooo

 

[EVMaso]

Interestingly enough I was blog hopping recently and I came across a guy who used to work as a developer doing algo trading, and he had a decent review of what it was like and why he stopped doing it. It's from quite a while back but it still seems highly relevant.

Codus Operandi

www.codusoperandi.com

 

[Stock Market]

I don't see why it wouldn't be, as long as the venture scores well according to CENTS. You have to ask the questions like whether you can exert some form of control, whether there's enough barrier to entry, etc. Are you using it for yourself, renting it to others, selling it, etc? The same basic idea can meet the CENTS criteria or not, depending on what you do with it.

But wouldn't the stock market be controlling in this situation?

 

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[alexkuzmov]

I would like to know if creating a stock algorithm/deep learning is considered a Fastlane path to wealth.

This is a$$ backwards.
The money is made not digging, but selling the shovels.
Not trading, but giving the tools for others to trade.
Once you decide to play games with the market, algorithm or not, you`ve already lost.

When will people learn...

 

[Stock Market]

This is a$$ backwards.
The money is made not digging, but selling the shovels.
Not trading, but giving the tools for others to trade.
Once you decide to play games with the market, algorithm or not, you`ve already lost.

When will people learn...

What about companies like rentec?

 

[alexkuzmov]

What about companies like rentec?

What about them?

 

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[Stock Market]

What about them?

They beat the market with their algorithms.

 

[alexkuzmov]

They beat the market with their algorithms.

So?
That just proves its possible.
And I`m sure that from every 1000 people digging for gold, 1 of them actually finds gold.
Yet the shovel maker has sold 1000 shovels.

You are missing the point.

 

[Stock Market]

So?
That just proves its possible.
And I`m sure that from every 1000 people digging for gold, 1 of them actually finds gold.
Yet the shovel maker has sold 1000 shovels.

You are missing the point.

You would probably make more with a good stock algorithm that outcompetes other automated investors and hedge funds.

 

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[The-J]

So you want to start a high-frequency trading firm? Sounds Fastlane to me.

Even if it's not a HFT and is instead an investment fund, that's also Fastlane.

What makes it Fastlane is the business model. You're focused on the offer, which is an integral part of the business model but it's not the entire business model. There's still other things to consider, such as how your business can scale.

An algorithm by itself that trades stocks for you might make you a decent income relatively passively, but to get SCALE you need additional funds under management (aka customers that aren't just you) and to divorce it from TIME while continuing to SCALE you need quants that are working to perfect the algorithm and create new ones. Once you start adding these things into the equation you've got a trading/investment firm, which is absolutely Fastlane.

 

[Stock Market]

So you want to start a high-frequency trading firm? Sounds Fastlane to me.

Even if it's not a HFT and is instead an investment fund, that's also Fastlane.

What makes it Fastlane is the business model. You're focused on the offer, which is an integral part of the business model but it's not the entire business model. There's still other things to consider, such as how your business can scale.

An algorithm by itself that trades stocks for you might make you a decent income relatively passively, but to get SCALE you need additional funds under management (aka customers that aren't just you) and to divorce it from TIME you need quants that are working to perfect the algorithm and create new ones. Once you start adding these things into the equation you've got a trading/investment firm, which is absolutely Fastlane.

Not necessarily a high-frequency firm. I was thinking like a machine learning algorithm that gives me signals.

 

[The-J]

Not necessarily a high-frequency firm. I was thinking like a machine learning algorithm that gives me signals.

It can be Fastlane if you want it to be. You know what the CENTS principles are: ask yourself what you have to do in order to satisfy every part of the question.

Just having an algorithm by itself isn't really Fastlane: you still have to use it to trade. Maybe you're using it and trading in a Fastlane way, and that makes it Fastlane. Or, you're selling/renting the algorithm and you're using that as a Fastlane.

All you've got is a product and no product by itself is Fastlane.

 

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[Stock Market]

It can be Fastlane if you want it to be. You know what the CENTS principles are: ask yourself what you have to do in order to satisfy every part of the question.

Just having an algorithm by itself isn't really Fastlane: you still have to use it to trade. Maybe you're using it and trading in a Fastlane way, and that makes it Fastlane. Or, you're selling/renting the algorithm and you're using that as a Fastlane.

All you've got is a product and no product by itself is Fastlane.

But because the stock market is technically controlling your wealth, does that still satisfy the CENTS?

 

[The-J]

But because the stock market is technically controlling your wealth, does that still satisfy the CENTS?

Control is actually a VERY ambiguous concept and there have been a lot of threads on it. For example, some argue that an Amazon FBA business isn't Fastlane because Amazon can ban you and your business is gone. Others argue that Amazon FBA is just a sales channel and whether or not it's Fastlane depends on how much you rely on that single channel. (My view is definitely the latter: any business that relies on one sales channel is not Fastlane, at least not until they diversify)

I look at control as "points of failure". How many points of failure does your business have? How many things need to happen before your business is completely unviable?

Can trading with your algorithm make money in any kind of market? Bull market, bear market, high volatility, low volatility? Or does it only work in specific market conditions?

Can the algorithm be tweaked over time to reflect changes in patterns? Does it tweak itself to respond to changes?

Control isn't just about whether you own it or not (although that's a HUGE component for several reasons), it's more about the extent to which various externalities can affect the business.

Generally, I don't count macroeconomic factors, because they affect all businesses even if they don't affect them all the same way.

 

[Stock Market]

Control is actually a VERY ambiguous concept and there have been a lot of threads on it. For example, some argue that an Amazon FBA business isn't Fastlane because Amazon can ban you and your business is gone. Others argue that Amazon FBA is just a sales channel and whether or not it's Fastlane depends on how much you rely on that single channel. (My view is definitely the latter: any business that relies on one sales channel is not Fastlane, at least not until they diversify)

I look at control as "points of failure". How many points of failure does your business have? How many things need to happen before your business is completely unviable?

Can trading with your algorithm make money in any kind of market? Bull market, bear market, high volatility, low volatility? Or does it only work in specific market conditions?

Can the algorithm be tweaked over time to reflect changes in patterns? Does it tweak itself to respond to changes?

Control isn't just about whether you own it or not (although that's a HUGE component for several reasons), it's more about the extent to which various externalities can affect the business.

Generally, I don't count macroeconomic factors, because they affect all businesses even if they don't affect them all the same way.

Well, the algorithm could probably be able to indicate several things. However, it won't be able to predict stocks like DOGE or GME. The business could completely be unviable if there is a financial crisis or stock market crash. Maybe another strategy/idea for the process would be easier because I've been thinking about coding a bot to help customers cop products in high demand.

 

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[Kevin88660]

I would like to know if creating a stock algorithm/deep learning is considered a Fastlane path to wealth.

Barrier to entry extremely high.

You can google Renaissance capital or successful quantitative retail trader like Ernest Chan.

 

[Stock Market]

Barrier to entry extremely high.

You can google Renaissance capital or successful quantitative retail trader like Ernest Chan.

Is it possible for an individual investor to use an algorithm as a Fastlane instead of making a business?

 

[Kevin88660]

Is it possible for an individual investor to use an algorithm as a Fastlane instead of making a business?

You need a team of people who are good in statistics and computing, I guess.

 

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[Kid]

Is it possible for an individual investor to use an algorithm as a Fastlane instead of making a business?

If you really want answer to this, here you go:
Yes, maybe, no.

You asked the wrong question.
The right question is :
Can YOU make algorithm that will beat the market?

I nor anyone sane on this forum can answer this question for you.
I never hear of anyone doing it solo.
I've read of people doing it in teams.
I also assume that there were teams that failed to do so.
Can you make it?
I don't know.
Try it and tell us.

 

[journeyman]

If you really want answer to this, here you go:
Yes, maybe, no.

You asked the wrong question.
The right question is :
Can YOU make algorithm that will beat the market?

I nor anyone sane on this forum can answer this question for you.
I never hear of anyone doing it solo.
I've read of people doing it in teams.
I also assume that there were teams that failed to do so.
Can you make it?
I don't know.
Try it and tell us.

It can be but I wouldn't hold my breath about the chances of success...

 

[BizyDad]

You would probably make more with a good stock algorithm that outcompetes other automated investors and hedge funds.

No you wouldn't. That algo doesn't exist. There is no one algo that dominates all other algos and traders. That's like claiming that one athlete can be victorious at every sport in all conditions. Nope. Not happening.

This is a ridiculous dream and you seem to be stuck on it. You don't want an honest answer, you want people to validate your position.

So then stop dilly dallying and follow this guy's advice:

If you really want answer to this, here you go:
Yes, maybe, no.

You asked the wrong question.
The right question is :
Can YOU make algorithm that will beat the market?

I nor anyone sane on this forum can answer this question for you.
I never hear of anyone doing it solo.
I've read of people doing it in teams.
I also assume that there were teams that failed to do so.
Can you make it?
I don't know.
Try it and tell us.

This is the second time he's asked the question, and I said pretty much the same thing on the last thread. Great minds Kid...

 

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[ZF Lee]

I would like to know if creating a stock algorithm/deep learning is considered a Fastlane path to wealth.

No you wouldn't. That algo doesn't exist. There is no one algo that dominates all other algos and traders. That's like claiming that one athlete can be victorious at every sport in all conditions. Nope. Not happening.

This is a ridiculous dream and you seem to be stuck on it. You don't want an honest answer, you want people to validate your position.

So then stop dilly dallying and follow this guy's advice:



This is the second time he's asked the question, and I said pretty much the same thing on the last thread. Great minds Kid...

The closest thing I can think of is TradeVSA's SmartRobbie, which provides special indicators for TradingView charts to signal buy/sell based on Strength and Weakness signals driven by smart money (eg upthrusts, Pentagon Guiders, 18-line change).

It also has stock screeners for fundamental analysis and Volume-Spread Analysis, to hint at possible breakouts or uptrends.

Home - TradeVSA

TradeVSA Trade Volume Spread Analysis System Malaysia - Trading Course Malaysia - Trading Seminar - Tom Williams Malaysia - Richard Wyckoff Malaysia Home Price Action Trading Home Price and Volume Trading - Bursa Malaysia Saham FInance Investment - Trading charts - TradingView VSA - Trading...

tradevsa.com

However, the founder himself cautions that the investors themselves should make their own decisions and only use the software as a guide. Which is why the founder himself goes on regular broadcasts to discuss stock ideas and commentary of candlestick TA charts- you don't use the trading software in isolation.

One example of his online broadcasts (free for public viewing):

View: https://www.youtube.com/watch?v=wNI-yE__W7A


There, he demonstrates how to read the SmartRobbie indicators and screener live.

So far, it is limited so far to my local Bursa markets- but they might be upgrading the software to be compatible with US markets and maybe crypto as well.

They claim to have a win rate of 75%...which is OK, but again, I imagine that differing personal targets and risk tolerances could make folks' experiences vary widely.

The founder and his coaches themselves also use the software to trade, and often share some of their picks in some Zoom calls...but of course, they don't talk about their own actual entry/exit prices lol.

Overall, if you do have a software to at least cut down SOME of the work of trading...yes, by all means, backtest, perfect it with a beta group and sell it as a product. But its also vital to build an experience around the product...put in stuff like regular broadcasts on stock ideas, some masterclasses and so on.

 

[Spino]

I would like to know if creating a stock algorithm/deep learning is considered a Fastlane path to wealth.

If you are planning to develop the algorithm to use it yourself and generate income investing personally then NO, it's not fastlane in my opinion.

If you build a business to develop automated trading systems to provide signals to customers then YES, that could be a fastlane option.

I had a website, that I sold last year, where I was selling trading tools (plugins) for a popular trading platform. I developed the tools myself, marketed, worked on SEO and building a website and after 3 years was basically generating a passive income (required only 4-5 hours of my time per week). The customers had value from it because I was helping them automating part of the tasks, and save them time. I actually started that business following the principles of Millionaire Fastlane . I then sold it for a good profit to a competitor.

I think there is a misconception that building trading systems is "easy", it is not, it requires study and hard work, trust me, I have tried for a long time before finding good methods. Also, once a system is developed it requires maintenance and eventually it will stop being profitable due to market condition changing. The development of trading systems is a continuous process, you build multiple systems and continue to build so that you can replace the unprofitable with new profitable ones.

And regarding you question if "You can't control the market so you don't satisfy the requirement of control", that's not true, the market is always evolving but if you keep putting the work in to find and adapt algorithms then you can stay in control.

 

[Rabby]

But wouldn't the stock market be controlling in this situation?

Well, sure it might be. But that depends on your execution, your business model, and how you use the stock market. By the same logic, "the markets" might control every business.

Look at it this way. Someone could buy 100s of shares of some stock and hope it goes up. Great, their plan is "hope." It's not CENTS but if that's what they want to bank on, they sure can.

Another person might start a fund using the same algo. Yet another person might start a company that helps non-profits keep their excess capital / donor funds invested. Another person might rent algos to life insurance companies.

So that's the thing... it isn't just the product or service that makes something CENTS-worthy, it's how you make your thing meet the requirements. Whether it scales or not, and whether you have control, etc., is a result of you understanding and applying those principles.

 

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[biophase]

I would like to know if creating a stock algorithm/deep learning is considered a Fastlane path to wealth.

Yes, but can you really make one?

You're hang up seems to be about it being fastlane for some reason. It's like asking, if the cure for cancer is fastlane because it relys on people having cancer.

If you can create it, you can sell it or use it yourself.

 

[loop101]

I would like to know if creating a stock algorithm/deep learning is considered a Fastlane path to wealth.

This is like asking if it would be considered "Fastlane" to build a spaceship and retrieve a passing asteroid made of diamond.