High frequency trading no more

I mentioned in my previous blog post that I was working on my high-frequency trading algorithm which was slow but fun to build. Sadly for me, the platform where I’ve seen an opportunity to trade is no more. I guess that’s how fast this sort of things happen. I’m really glad that I didn’t end up losing money on it.
Dodged a bullet there and I’m probably on the lucky few.
We always learn and this was a valuable lesson for me. No matter what opportunity you may see there’s always risk involved.

Risk vs reward

I don’t quite believe in higher risks and higher rewards because, in my opinion, this involves only rational decisions. And as we know, rationality isn’t the strongest point when it comes to people and the financial market. I’ve seen plenty of times when companies are either sub-evaluated or over-evaluated, either way, there’s never a static point to ensure that’s correctly aligned.

There’s someone famous that figured this out before behavioral economics concept was even invented.
You probably heard of him, he’s one that knew how to take advantage of all this chaos and speculative trading that’s happening in the stock market. He’s Warren Buffet, you probably heard that he’s patient when he’s buying and mentioned in one of his articles, the stock market should be viewed as a voting system instead of a price mechanism.

What’s next

I’ll be going to investigate other business models and see what other interesting things I’ll find. There are more markets so my slow high-frequency trading venture isn’t completely off, just that in other markets I didn’t find such a big gap in the margin of profits.

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