How to become an algotrader? What are the options to enter and succeed in algo-trading

A total of 4 options exist.

This article covering retail accounts only.

Option-I: to buy a bot*. If you are very careful and/or lucky and it's not a scam - here we go, you are instantly an algotrader and can make a living by trading markets in a fully automated manner on personal account.

Cons.: limited growth potential, hard to expand and scale up as a business. You don't get to get open source-code. Compiled file without time-expiration is customary (could be limited number of activations, or file with time-expiration if rented).

NOTE-A: chances to get scammed are very high (~95%), nowadays scammers get very innovative and can be incredibly convincing.

*Bot - an automated trading robot/software, aka Algo, aka ExpertAdvisor (EA).

Option-II: to code a bot yourself. Good feasible option, provided you know what to code, and how to code.?

Just a few most talented and committed traders with passion, skills and massive resources will grow to pass beginners level, continuous debugging and other challenges, followed by tedious and exhausting backtesting and optimization to escape all the "curve-fitting" traps, and finally making it to the top - sustained returns live-on-real (when you just sit back and watch the account grow).?

Estimated timing to accomplish that: 5-7 years would be very optimistic.

Option-III: to order a bot on freelance - to be coded by a professional programmer/engineer. Ultimately that's the best viable option (also timewise). Of course provided you have prepared a detailed strategy/ruleset (cannot order anything on freelance without written detailed order/task description).

Pros.: AI is getting 'hot' item. When AI 'lagging' will be 1 minute or less - it can be useful for intraday trading.

Cons.: can be expensive depending on strategy complexity.

NOTE-B: if you go for II or III - now you are not only algo-trader, but also a quant, 'algo-developer' - you stay in control, own IP, own source-code, and otherwise keep a in driver's seat.

NOTE-C: coding part is estimated 10-20% of entire work-scope.

Sub-Option mix of II and III: use designated services/websites designed to build, test and operate algos (kind of DIY "bot-constructors"). Three types:?

• export ready bot (final version of the code) to other trading platform(s)
• stay web-based
• platform native built-in "bot wizard"

Pros.: bugs-free, cuts short development time drastically

Cons.:

• ?too basic
• ?with all the advanced montecarlo and stuff, if you combine 250 indicators + 250 filters in 1 bot - all you get on exit is perfect "curve-fitting" machine

Decent option for practice and trading own funds.

Option-IV: to subscribe to EA Signal - your last resort, at least you get the ball rolling, stay flexible and with good diversity spread the risk (some of my contacts subscribe to 5-10 Signals).

P.S. In a river of algo-trading most likely to hit few rocks ?

There is no "beginner mode". What looked so reliable/profitable and clever in manual, once coded and run live - will be efficiently/meticulously absorbed by the market.

If none of the above options suits you - you can always stay discretionary; in 2021 at least 10 million traders worldwide find manual trading more enjoyable and consciously avoid automation.