This is a three-part series on the history of copytrading, and its evolution to automated trading ecosystems such as GStar.AI
Click here to read Part 1: Copytrading and its origins;
and here to read Part 2: Flaws within existing copytrading systems
While there are many copytrading platforms available as of 2018, very few to none copytrading platforms offer optimization of strategies or algorithmic trading, which is GStar.AI’s main draw. One of the main flaws of traditional copytrading platforms is its lack of true automation. In a traditional copytrading system, the “copying” is based on the activity of the trader, and while there is a form of “automation”, it is still fully dependent on the decision making of the trader. Should there be periods of inactivity from the trader, or worse, should a trader go rogue, the impact on the investors following the strategy will be catastrophic.
1) Control without sacrificing flexibility
With gstar.ai, this problem is solved with an element of control added into the system. In GStar.AI’s ecosystem, the moment a “Star” is licensed, the underlying algorithm will not be able to be changed, and this is to prevent the above situation of traders going rogue. However, flexibility is still available too, as the creator of a “Star” is still able to make changes to the algorithm to suit the market conditions; but these changes will still need to be approved by the licensees of the “Star” before the changes are implemented on their personal account, thereby retaining the element of control. This is akin to having a hard fork in a blockchain network, and thus licensees of “Stars” retain their element of control.
2) Natural Language Processing
Secondly, GStar.AI brings trading even closer to the common man. With Natural Language Processing (NLP), GStar.AI will be able to translate ideas in English to its algorithmic form. NLP allows for ideas to be translated easily, and also ensures true automation true its algorithm. This will enable many experienced traders in the industry who may not be able to pick up programming or similar tools to create their automated trading systems to be used on other copytrading platforms. We can now tap on a very fertile group of experienced traders who have not been previously considered.
3) Optimization of strategies
Thirdly, GStar.AI’s optimization of strategies allows for traders to find the best possible option for their strategy. Very few copytrading offer instant optimization, and even if they do, bundle it together with other “premium” tools to be sold as a bundle. With gstar.ai, simple optimization is offered to all users for free, and complex optimization is available at a small fee to cover the computational cost. Overall, GStar.AI’s aim is to provide flexibility to its users, and for users to be able to select what they truly require in order to avoid unnecessary fees.
4) Structural protection of capital
Fourth, GStar.AI actively looks to protect its users from high risk trading strategies, such as martingale strategies, which may promise returns theoretically, but in reality may wipe out an individual trader’s capital given enough time. Such high risk strategies are not available in GStar.AI’s trading system by design, which aims to actively implement mechanisms to protect the capital of its traders.
In conclusion, GStar.AI’s key advantage over its direct competitors is its advanced used of technology, through algorithmic trading and optimization, thereby truly achieving the “automation” that many other platforms have aimed to achieve. Karl Marx once argued that technology would evolve to a point where it would free us from mundane tasks, allowing us to explore life to its fullest degree instead of slaving to earn the next dollar. Automated trading represents the next step in this financial freedom.
Come join us now, and be a part of our algorithmic trading movement.
