Can Trading Robots Really Make Money?

A more pragmatic trading concept should use quantitative trading as a tool. To put it bluntly, if your strategic thinking can’t make money, it’s useless to quantify it. Quantification is nothing more than regularizing and clarifying strategic thinking, increasing your ability to measure the relationship between factors, and reducing your emotional impact in real trading. It is your scaffolding, but it cannot replace your brain.

Strategic thinking is the core of quantitative trading robots. It is recommended that traders learn quantitative trading knowledge as much as possible. Because most investors in the investment market are subjective types of transactions. It is not to say that subjective trading is not good, but that the investment performance of subjective trading, in terms of attribution, is often indistinguishable, whether it is a matter of logic or luck.

Why are there so many traders playing for a sucker in the investment market? Investment cognition is one aspect, and attribution error is another important aspect. For example, during the bull market, novices often make a lot of money inexplicably. But the money earned is often more weighted by luck. Based on feeling and experience, it is difficult for you to distinguish whether it is your own logic or whether it is good luck or not.

The trading robot is to purify investment ideas and trading experience and transform them into an easy-to-operate tool. If it is wrong, you can find the logical source of the error. If you are right, you know where you are right. Only with accurate attribution can you control trading performance, and then optimize and improve trading strategies.

All in all, whether a trading robot can make stable profits has a lot to do with the trading cognition of the strategy designer, and it also depends on whether the tool user can strictly implement the trading strategy.