Algorithmic Trading vs Manual Trading… Which is Better?

Matt: So Jeff, welcome back to the channel. And before we dive into anything, I just want to quickly address you guys. You probably noticed an environment change; we’re actually here in Tulum. I figured what better place than to just hop on the camera with Jeff because the first video was a hit. And if you guys haven’t watched it, the link is up above. You can click that and see the first interview where we went over a bunch of stuff regarding the algorithmic trading space. But today, I wanted to talk to Jeff exclusively on the pros and cons when it comes to manually trading versus utilizing software. Because like I said, we’re here in Tulum, me and you have been actively trading without even doing any trades on our own. And we had a conversation where I was like, could this even be done manually? Like, are these guys really trading while they’re on vacation for who knows how long and with very patchy Wi-Fi?

Jeff: Yeah, you’re saying all the influencers that post about trading and stuff. Yeah, I mean for big swing trades probably, but there’s no way they could do the amount of volume that we’re doing. Like, I’ve already, my accounts have easily made somewhere between 300 and 700 trades just taking the average amount of trading activity per our strategies and multiplying by how many accounts I have. So there’s no way that I could be sitting behind a computer and hitting 300 to 700 trades because I’ve been working on other stuff while I’ve been here, just working on the business, and then we’ve been on the beach and traveling, riding scooters, getting dinner. It’s so cool to see it actually operate when you don’t… you’re not doing anything. You’re just checking up on the account, making sure that they’re good. Every morning, I check up on the accounts, just like my bank account, yeah, just to make sure everything’s functioning right.

Matt: Yeah. And I did check up on my account, I think, on the 9th, and I’ve already taken 20 trades, zero of which took my discretion. So I didn’t need to find a setup. I didn’t need to stalk the charts and absorb my time there versus enjoying where I’m at currently. Yeah. Like we’ve done tons of cool stuff already. Work has still been done, whether we’re doing anything or not.

Jeff: Yeah. It almost feels like manual trading is like the primal thing from like… It almost feels like the ’90s or the early 2000s now. We’re kind of moving much more into a digital era where you’re using a ton of different SaaS products and different ways to automate parts of your life and especially business. Like I’m sure there’s business owners that are watching this video right now. You probably use something like Zapier or a CRM like HubSpot or you use different types of project management software that automate certain parts of the tasks and tons of AI software that we use as well to communicate with prospects and to respond to customer service tickets quicker. And you know, as a business owner, we do those types of things and use that type of technology. And I would almost guarantee if you’re a business owner or you’re even working inside of another company, if they’re running at any type of scale, they’re using some type of automation. But for some reason in the trading space, it hasn’t really moved into the trading space like people don’t treat trading like a business. You have to if you want to be successful. And the thing is people don’t even realize that using software to take 90 plus percent of the work away from the manual trading of literally staring at a chart and waiting for the exact setup that you have, that you’ve backtested, that you know is successful. When you’re just sitting there waiting, that’s like a mundane task that you don’t need to do anymore. Like there’s no reason for you to sit there and wait for a setup because sometimes it could be multiple days of you just staring at a chart waiting. You know, I just don’t understand how people haven’t realized the correlation. Like there’s so many other areas of our lives and businesses that we use technology to automate the majority of work. It hasn’t translated into the trading space really yet. And I think that we are, you know, as far as Nurp and our offerings, we’re definitely one of the top players that’s helping retail and high net worth traders use software to take away the vast majority of the work. You know, I’m not going to sit here and say that you never have to do anything. You know, if the account grows, you increase the lot size, like I said. I like to just check up on my accounts to make sure that they’re functioning how they’re meant to function, just like checking my finances. But I mean, I would say 90 percent, 90 plus percent, I would say 99 percent if not more, because we have an account that we’ll talk about later that did 300 percent last year with no manual trades and no intervention at all. All we do is we bump up the position size as the account grows…

Matt: …Which is reasonable because that’s technically what you should do when you have an account like you want to increase the amount you can earn relative to the account balance.

But another thing that I wanted to talk about, you said about 90 percent and I agree that it’s probably higher than that. Unfortunately, we can’t say 100 percent because nothing is 100 percent. But one thing I wanted to highlight is with that 90 percent, that comes the learning curve, that comes the time and attention on trying to find the setups like you’re talking about. But it also comes with the emotional aspect of it. For instance, if I was manually trading and I needed it to not only afford where I’m at but afford the bills back home, I would be so emotionally invested I would not be able to look at the beach the same. Yeah, that’s a massive one. I mean, how many times in your… because you’ve done a lot of manual trading, have you…
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