The world of trading has never been a level playing field. Ordinary traders have always lost out to big firms and the super-rich.
Of course, some degree of that is inevitable. It’s even easy to dismiss — resource allocation means the rich and powerful will have an advantage. And, of course, there will always be some level of inequality in the industry.
However, with automation and the founding of NASDAQ in 1971, this gap has grown into a chasm. Automation is responsible for so many powerful benefits that it’s completely changed the trading world, taking those who can harness it into a different league.
That means, of course, that those unable to access automation end up being relegated to a lower level of trading. Stuck relying on manual trading and inferior technology, they simply can’t compete.
And while Bitcoin (BTC), Ethereum (ETH), and other coins are ostensibly for the masses, large scale traders are beginning to dominate these markets as well. The cryptocurrency was meant to be a democratized asset for the people, but automated trading systems have made it more like legacy equity positions and less something for average traders.
The question is, can that ever change? Will ordinary, ‘average Joe’ traders ever see the day where they can access automation like the wealthiest firms and finance moguls?
In fact, there are plenty of movements currently taking place which aim to make trading more accessible to everyone. Alphanu’s SaaS marketplace is one example, and there’s a growing appetite for this.
The Barriers to Automated Trading
As with so many things, money is the main obstacle standing in the way of most traders when it comes to automation. Big firms are able to pay talented developers to build algorithms for them and even hire their own teams of cutting-edge coders who can develop tailor-made algorithms to trade effectively.
With these, they’re able to trade in a way that circumnavigates human error, makes use of effective tools like backtesting and stop losses, and del