Here we post the review of several algotrading systems made by Andrew Pollock.
I have been looking for an algorithmic system or a trading robot for a long time. Finally found what I wanted, even managed to profit and get a good profit.
But I will be consistent. In the process of searching, I found and analyzed the following automated trading systems: Wealthfront, Vanguard, Bloom, AlgoNest, My Robo Adviser.
As a result, here is the table. Here are the basic conditions for each of the estimated trading robots.
|Wealthfront||Vanguard||AlgoNest||Bloom||My Robo Adviser|
|Account Management Fee||0.25%, but first $10,000 is free||0.30% of account balance||5,3% of profit||$10/month, the first month is free||0,6% of all accounts balance|
|Assets||Stocks, real estate, U.S. government, corporate and municipal bonds.||Funds||Currencies||Stocks||Stocks, emerging market stocks and bonds, commodities|
|Automatic Rebalancing||Meaning portfolios are rebalanced when an asset class has moved away from its target allocation, rather than on a quarterly or yearly schedule.||Portfolios are rebalanced once per quarter or as agreed upon in financial plan.||Balance reallocates once per month.||Portfolios are checked every 90 days and rebalanced if needed||Automatically reallocates your investments|
As a result of my personal research it was confirmed that all companies collected information about their clients. They want to know the name, address, email, mail, phone number, request scans of id documents. Bloom company offers on its page to choose from the list the bank that serves you and enter all the passwords that give access to the account. Frankly speaking, I did not like it. Although the basic requirements are clear and fit into the rule of “know your customer.”
I also studied carefully the company’s disclaimer. Everything is explained in details that client is responsible for the risks of losing an investment deposit. It looks like this:
“PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND ANY EXPECTED RETURNS OR HYPOTHETICAL PROJECTIONS MAY NOT REFLECT ACTUAL FUTURE PERFORMANCE. FURTHERMORE, PAST RETURNS MAY REFLECT THE PERFORMANCE OF ASSETS FOR A FINITE TIME, OR DURING A PERIOD OF EXTREME MARKET ACTIVITY. ALL INVESTMENTS INVOLVE RISK AND MAY LOSE MONEY».
I did not consider information about the insurance, as I do not believe in them. Lawyers of insurance companies will find thousands of reasons, based on which you will be refused to be paid out.
Therefore, in this respect, whether it is a large robo trader, or a small one, for us, investors, does not make any difference. We risk our money ourselves and in case of loss, no advisers or insurers will help us. Everybody likes to work only with the investors’ live money. Nobody is interested in losers.
After thinking sometime, I decided to take a chance and made up my mind on the Fintech startup AlgoNest. I realized that these were high-risk investments, but the opportunity to get a 1200% or more profit, justified the risk. Fintech AlgoNest at the end of each month updates the trading balance by adding the resulting profit to the placed deposit. Thus they, as I understand, use a system of compound interest. So, with an average monthly return of 20-25%, they manage to achieve such high rates.
I was bribed by the system`s management fee. AlgoNest receives remuneration not from the placed deposit, but from the received profit. Meaning if I lose, they lose too. This is more real than a fee from the deposit amount, when no matter whether you have a positive or negative profit, your management team always gets its reward. Well, in general, in order to diversify my portfolio, I was looking for a high-risk instrument that gives the maximum profit in case of a successful deal. And I did it. Net profit for 9 months is 953%.
Good luck everyone!