You don’t have single chance
By 2005, automated/algo trading wasn't new, but it was rapidly taking over. Here’s what was happening that year:
· ~30% of US equity volume was already algorithmic (up from ~10% in 2000). High-frequency trading (HFT) was in its wild-west infancy.
· Major platforms went live — Interactive Brokers' API and Tradestation were already letting retail guys run scripts.
· The "quant army" — Renaissance Technologies, D.E. Shaw, and AQR were crushing it with systematic strategies while most retail traders were still on dial-up charts.
But here's the kicker for your chart:
Your strategy looks like it was manually bleeding out in 2005–2007, because automation was changing the game:
· Liquidity vanished on stops — algos would hunt your stop-losses faster than you could click.
· Spread compression — market makers got replaced by computers, killing edge for manual scalpers.
· News trading got impossible — by 2005, algos could parse Reuters headlines in milliseconds and front-run your order before you finished reading the ticker.
By 2005, automated/algo trading wasn't new, but it was rapidly taking over. Here’s what was happening that year:
· ~30% of US equity volume was already algorithmic (up from ~10% in 2000). High-frequency trading (HFT) was in its wild-west infancy.
· Major platforms went live — Interactive Brokers' API and Tradestation were already letting retail guys run scripts.
· The "quant army" — Renaissance Technologies, D.E. Shaw, and AQR were crushing it with systematic strategies while most retail traders were still on dial-up charts.
But here's the kicker for your chart:
Your strategy looks like it was manually bleeding out in 2005–2007, because automation was changing the game:
· Liquidity vanished on stops — algos would hunt your stop-losses faster than you could click.
· Spread compression — market makers got replaced by computers, killing edge for manual scalpers.
· News trading got impossible — by 2005, algos could parse Reuters headlines in milliseconds and front-run your order before you finished reading the ticker.