In 2000 there were 600 stock traders at Goldman Sachs, and today there are only 2 traders left.

Traders are endangered species in banks and investment funds. But why is this possible?

What pushes the more powerful institutions of the planet to invest billions in robots, rather than in human beings?

Robots do not have ego

As PAUL TUDOR JONES said – Ego is the worst enemy of the trader.

We still remember of Jerome Kerviel, who made a loss of 4,9 billions for his bank Société Générale in 2007, after taking positions hundred times bigger than his maximum risk, by trying to recover his losses – This is not a unique case.

Robots does not have Psychologic bias

A robot is not nervous – anxious – euphoric after a loss or a gain – it is not stressed either because it manages a large sum of money.

It does not matter if the position represents 0.1% or 10% of the portofolio, its work will produce exactly the same result.

Robots does not need a break

A robot can trade 24/24 without losing his concentration, which is simply impossible for a human being.

A robot is never sick, distracted by social networking or by phone, has no lunch break and paid holidays or days off.

Follow and trade thousands of markets

A robot can scan hundreds of markets at a time, execute hundreds of trades simultaneously, manage positions and the total risk on a whole portfolio.

Execute trading plan without any deviation

A robot will execute exactly the trading plan for which it has been programmed, unlike the trader who may have lack of discipline, one of the major problems of human traders.

Fixed payoff

A robot will cut a losing or winning position at the level for which it was programmed. Knowing in advance the payoff ratio of a trading strategy is a luxury, that a human trader cannot afford by managing his positions by relying on his emotions.

With all these advantages, it’s easy to understand why robots are executing now the large majority of orders on the markets , but

Those who have integrated robots in their game plan don’t see them as a threat

For the ones that are not already doing 100% algorithmic , robots can make the trader’s life far easier and less stressing, they can limit losses when used as a risk management software, analyze the markets for the trader and send him trading signals, or manage the trade after opening it with trading platforms like multicharts or Ninjatrader.
Once more those who adapts will survive this drastic change in the trader’s world.