WHAT IS DATA-TRADING?
You get into your car to go to a meeting with a client. You turn on your car's navigation system to find the quickest route and not annoy your client with calls for directions.
Or you order a taxi – and track from your phone how far away your taxi is so you don’t waste your time standing on a sidewalk.
Or when you’re planning a family trip to the countryside – you check google maps for how long it will take you to get to your destination and what family attractions are found along the way.
We all use GPS every day and our lives and business productivity have been massively improved by it.
DATA-Trading is like a GPS system while you navigate the treacherous Ups and Downs of the markets. DATA is your guide to gain knowledge and make better decisions in the markets. It improves your profits in the markets, and stops you from making costly mistakes.
Here’s Ray Dalio, the founder of the Bridgewater Associates hedge fund, explaining how to DATA-Trade 👇
A widespread misconception is that algorithms alone rule the markets. Or that algorithms equal full automation, or algorithms mean the replacement of humans. Articles like “the stock market is now run by computers and algorithms,” like in The Economist, do not help. It is true – you can no longer compete in the markets by manual discretionary trading alone. However, the idea that you can just use algorithms on autopilot and let them bring you riches is far from the reality of algorithmic trading.
The holy grail of trading is somewhere between automated algorithmic trading and human discretion. The golden middle lays where Humans and Machines collaborate as one.
This Humans + Machines collaboration is something that is rapidly growing and many businesses are now at the cusp of major transformation. It can be a BMW assembly plant in Germany where workers and robots are collaborating in a well-choreographed dance to assemble the new BMW 5 series.
Or the computer company Dell where people use software to analyze huge amounts of client data such as social media activity, to send emails to a client at just the time when he is most likely to buy.
Algorithms are not just automating many processes, making them more efficient; they are now enabling people and machines to work collaboratively in novel ways. When you data-trade, you’re in control. You collaborate with the machine and both of you do the parts that are most suited for each.
Machines – analysing huge amounts of data, testing patterns, executing and managing orders.
Humans – exercising judgment, personalising trading styles and planning your financial future.