Introduction to Scottish fintech Alluvie
Article written by Emmanuel Bernieri, founder and CEO at Alluvie
It's a safe bet for me to assume that most of you have already had conversation with a friend, acquaintance, or relative about cryptocurrency or the current stocks skyrocketing everyone's talking about. You may even have spent at least a few minutes daydreaming about investing some money, doing THE smart move, based on your greatest hunch, and multiplying your investment by 2, by 10 or more in a matter of weeks.
Perhaps Tesla should be the horse you should bet on? Or what about Gamestop? Dogecoin?
Lately, new brokers have entered the game, such as eToro and Robinhood. Their marketing is impeccable. Their ads keep popping up on our feeds on all the apps and websites we use, making us the very sweet promise only 0 fees trading app can make.
Because as non-professional traders, we are their target.
Indeed, today the market of non-professional investors (also known as retail investors) is booming. More than 100 million individuals around the world are investing money on financial markets. A booming market! But there is a catch: a recent large-scale study focusing on this emerging market has shown that, on average, 80% of us, retail investors, will lose money on financial markets. Less than 1% will be profitable in the long run. It's a lesser chance than winning the Hunger Games, if you'll allow me. Sure, trading can be a hobby!, but the hard cold reality is coming right back at us. It's not magic, and it can't be just luck. Skills are required and it can even be a full-time job for some of us. You may need mathematical skills, coding ones, or even law, geopolitics, etc.
While most people believe that trading is just knowing the right information before anyone else, the reality is different. 99 times out of 100, being a good trader means analyzing a situation and trying to balance the risk/reward inherent to the situation. Guts, glitter, and speedy heated arguments phone calls are just completely outdated since we've entered the era of algorithmic traders. Now, a professional trader/team of traders build and rely on algorithms able to define when to buy and when to sell a selected financial asset.
Nowadays, we estimate between 60 and 80% of the share of total orders on the US market that comes from algorithms. The problem with algorithmic trading is that it requires hundreds of hours just to build your coding environment to test your trading strategy properly.
This is the main reason why, at Alluvie, we have decided to build a platform where anybody can test their ideas on historical data before executing it. In a nutshell, we are taking care of all the technicalities. Thanks to our platform, you can test ideas on the fly without having to know how to code. You just need to write your rules of buying and selling (when to buy and when to sell) and then select the assets on which you want to test your strategy, and that's it. You will automatically access the backtest of your strategy and you will be able to assess the quality of your idea before
making a bold move without prior knowledge.
Of course, we know that lots of retail investors don't really know what their strategy could be. That's why we are continuously creating trading strategies that are free to use by any of our members and we also develop a marketplace where other retail investors will rent their trading strategies to others. Finally, we are also developing direct bridges with brokers to fully automatize your strategy, if and when you are happy.
Our goal is to make your investment safer, easier to manage and more profitable in just a few clicks, with no hassle, no hidden hurdles and as few steps as possible. The platform is already live. You can register now and test it for free for 1 month.
Don't waste your time trying to "feel" the market!
Join us and make the right move today. We are waiting for you. Welcome to trading 3.0.