We’re at a massive disadvantage to make money in the markets because of factors that are simply beyond our individual control.
So you downloaded a mobile trading app to learn how to invest. But you lost (or will lose) money. As current or future investors, we all face this problem. We are constantly at a massive disadvantage. But why?
Reason 1: We are not bots.
Reason 2: We are human.
Kind of the same thing, but also pretty different.
The reason that over 80% of the market’s trade volume is done with algos is because bots do it better. Just about the best a person can possibly do right now is to join an algo coding website and hope for the best. However, LESS THAN 7% of the world can code. Thus, less than 7% of the world (or someone who hires a fraction of that 7%) is actually presiding over 80% of the stock market trading volume. Let that sink in…
Less than 7% of the world is actually presiding over 80% of the stock market trading volume.
The second reason falls in line with the first — because we are human, even if we are given the right information at our fingertips, we don’t have the actual ability to execute on it objectively. We are subject to error, bias, and trading on “gut feeling” as our default. Imagine that moment when you see “Tilray” falling so fast, for so long, that you can’t stand to watch it any longer. So, you sell all of your shares. THEN, you watch it shoot back up again hours later. That is the essence of being a human trader.
However, to a certain extent that strategy above seems like a valid reaction to what you’re seeing. You don’t want to be at a loss on a stock (let’s say Tilray again for simplicity) that you just spent $200 on.
YOU DON’T WANT TO LOSE MONEY!
So why not sell the stock when you notice it reach the price where you bought it? Or even better, when you see the whole cannabis industry average dropping by $40, why don’t you sell it then? OR, even better than that, when the Wall Street Journal releases an article with “Cannabis” AND “banned” in the headlines AND the Cannabis industry average price is falling, why not sell off all your shares and leave with what money you can, having predicted the industry’s terrible demise?
When the Wall Street Journal releases an article with “Cannabis” AND “banned” in the headlines AND the Cannabis industry average price is falling, why not sell off all your shares
Well, let’s be honest — we just don’t have time to constantly and consistently watch the market to execute our trading strategy during the trading hours of 9:30am-4pm. We have classes, jobs, cats, and other daily obligations.
As you can imagine, this is not a problem for the wealthy and many banks, because having lots of money decreases these logistical trading barriers. However, for everyone else, these practical barriers are a serious problem. Wouldn’t it be great to have an app that watched your portfolio and let you automate the trading of your ideas when you couldn’t be directly online?
That’s what we do.
So my friends and I have been building a solution in my Harvard dorm. We call it StrattyX. After seeing and building the tools available to big players in the algo trading space while working in finance, we wanted to give regular investors the tools to competitively engage with the stock market. Our solution allows you to create and automate your investment strategies on real-world events in real-time. You can think of it as automation software for your Coinbase or Robinhood account on your mobile phone. No more are the days of manual investing and glaring at your phone waiting for your stock to reach rock bottom. Just automate away with StrattyX.
Anyone can trade. Any stock. Anytime. There’s no reason to ever miss another market opportunity.
Finally, there’s algorithmic trading for the rest of us. Sign up to try out the app before anyone else and start automating your investment ideas at www.StrattyX.com.
The Authors
All of our articles are written and edited by members of our startup team listed below.
Auriel Wright is the CEO and CTO. Auriel is a Junior at Harvard studying Computer Science and Business Mandarin Chinese. Personal Medium.
Kristen Fang is the Head of Strategy. Kristen is a junior at Harvard studying Computational Neuroscience.
Jared Cohen is the Head of Marketing. He is a senior at Harvard, studying Economics and History.
We are excited to bring you on the journey of our startup as we push to help level the playing field for retail investors. Let’s democratize algorithmic trading :).
Under no circumstances should any Content from StrattyX Inc. or from any of StrattyX Inc.’s publications, advertisements, videos, chats, communications, emails or any other means of communication be used or interpreted as investment advice. Thank You.
