Funds Management (1) - PlaygroundFX

This topic discusses a kind of misunderstanding about the requirements for funds management. Let us find the best trading strategy at PlaygroundFX.

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A Kind of Misunderstanding about the Requirements for funds management (1)

We prefer to use Fintechee as our trading terminal.

Before we started developing trading robot s, we assumed that the requirements for algorithmic trading should have included: high profit, low cost, low risk. After we finished developing super trading robot s, we figured out that the requirements for algorithmic trading are actually different.

What’s the real requirement for algorithmic trading?

A leader of some funds management made an offer for our trading robot s. He talked with me in 2016 and asked for a perfect grail EA(trading robot ). He said he’d like to pay for a grail EA by a big amount of money.

We had already had a lot of experience to develop trading robot s for a long time. So we had enough confidence to accept the deal.

A vision was easy to build, but developing it was not that easy, especially when the clients asked for a grail level EA. We tried our best, coded, tested again and again. After several months, we still had not succeeded yet. The client had no intention to buy as well after we fed back to him that it’s an impossible mission. Even if we had spent several months developing without any payment or upfront fee and even if we invented several good algorithms that showed us a good performance, the client was not satisfied yet. We were frustrated as well.

Then we concluded that the requirements for algorithmic trading should include: high profit, low cost, low risk, a grail level.

Our trading robot

(EA)‘s performance

We took more effort and finally, we got some perfect algorithms that showed us much better backtest ing performance(Please refer to the screenshot above).

We talked with the leader of the funds management again. He had not stopped doing the funds management yet and still had interests in the trading robot . I showed him our new EA’s performance, but he didn’t accept it. His desire didn’t change at all – A grail level trading robot . I told him that a grail level EA doesn’t exist. We can’t make an EA get profit always.

I asked him whether he had found some grail level EA once? No, he said he hadn’t. He told me he lost a lot of money by trying some fake grail level EA. I asked whether he was guaranteed to refund if the EA was not satisfying. No, he answered.

Then why did he trust the fake EA, not a person who tells him the truth? Even if he lost money, he still insisted on his wrong way to look for grail level trading robot s. There must be something wrong!

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