Does the average person diversify their income through trading? While those standing on the trading sidelines want to say yes, the statistics say otherwise: up to 90% of traders lose money in stocks. That is a sobering reality, so before you jump into the world of FOREX, futures, and equities, it may help you to understand why so many people do not find the success they seek. While the stock market is immensely complex and fluctuates according to factors too vast for one article to explore, one possible cause of trading losses is likely because the average retail trader does not have years of experience to guide them. It is this issue that TruTrade.IO, including Co-Founder Danny Rebello, seeks to address with its automation software, which incorporates trading strategies used by investment bankers and other trading professionals.
The Issue That Many Retail Traders Face
The average stockbroker has a degree in finance, business, or economics and has also obtained a Financial Industry Regulatory Authority license, among other certifications. They then spend years analyzing the market, gaining knowledge over time that helps them to become more adept at understanding what the market is doing and then trading accordingly. True, professional traders still make mistakes and experience losses, but it is hard to argue that their knowledge and experience are not assets.
Trading, therefore, can involve a high degree of competence as well as a lot of time, energy, and effort. It is a high bar for most retail traders, who already have their own careers, families, and personal lives to attend to. While many choose to educate themselves through the myriad of books and seminars available, that knowledge also takes time to assimilate.
The question, then, is if there is a way to allow retail traders to have access to the strategies used by professionals. TruTrade.IO believes the answer is yes and points to its automated software as a possible solution.
The Technology that TruTrade.IO Has Designed
TruTrade.IO states, “Our primary goal was to design software that would be institutional-grade and intuitive to use for the average retail trader. We spent a lot of time analyzing the techniques used by investment banks and hedge funds. The goal was to find a way to put that professional trading knowledge into one platform that would then be at the fingertips of retail traders. Our software does this, and it can potentially help retail traders to make decisions based on professional strategies.”
The TruTrade.IO team says that through their research, they discovered that one of the biggest problems encountered by retail traders was how to potentially manage risk. “We knew, of course, that there was no way to completely eliminate risk from trading, but we believed we could design a module that would aim to lower it. The result is DRAMM, our dynamic risk management module, which allows traders to oversee a variety of money management strategies that we have found to be common in the industry.”
The company explains that retail traders often struggle to reduce drawdowns and accumulate equity, skills that professional traders normally have. “To help with this, we gave traders the ability to hedge their positions against the same financial instruments or against other correlated financial instruments in different asset classes. The software is systematic and incorporates multiple bar-types and timeframes. This is very similar to what professionals have at their disposal.”
TruTrade.IO also addresses the problem of slippage. “Most professional traders know how to possibly avoid having the expected price of a trade and its price when it is executed be different,” the company says. “This is knowledge that is usually outside of a retail trader’s experience, so we also incorporate bot-add-ons to potentially help with this.”
The Takeaway for Retail Traders
While the world of trading will always be volatile, the question is whether that volatility can be reduced. TruTrade.IO’s automation software may be able to provide the answer, as retail traders now have the potential to make trades that are backed by institutional strategies as they go deeper into the world of FOREX, equities, and futures.
To learn more about TruTrade.IO’s retail trading technology, please visit https://www.trutrade.io/.
Direct Phone Number: 480.248.3554
7014 East Camelback Road
Scottsdale, AZ 85251