{"id":10595,"date":"2023-05-16T07:00:00","date_gmt":"2023-05-15T21:00:00","guid":{"rendered":"https:\/\/bettersystemtrader.com\/?p=10595"},"modified":"2023-05-19T11:55:13","modified_gmt":"2023-05-19T01:55:13","slug":"how-does-algo-trading-work-2","status":"publish","type":"post","link":"https:\/\/bettersystemtrader.com\/how-does-algo-trading-work-2\/","title":{"rendered":"Can Algo Trading Beat the Market?"},"content":{"rendered":"\n<ul><\/ul>\n\n\n\n<p>Investing in an index like the S&amp;P 500 may seem like a safe bet, but it can often bring about huge drawdowns for index investors.<\/p>\n\n\n\n<p>Is there a better alternative? Can algorithmic trading really beat the market?<\/p>\n\n\n\n<p>In this episode of Breakout Trading Answered, Mr. Breakouts compares the return profile of index investing with an algorithmic trading strategy. Which one is better and why?&nbsp;<\/p>\n\n\n\n<p>Here\u2019s some other topics we discuss in this episode:<\/p>\n\n\n\n<ul>\n<li>How algorithmic trading works and how it differs from investing in an index,<\/li>\n\n\n\n<li>The returns and drawdowns of index investing over the last 5 years,<\/li>\n\n\n\n<li>Comparing investing in the S&amp;P 500 vs algorithmic trading strategies,<\/li>\n\n\n\n<li>Can algorithmic trading beat the market, even with slippages and poor execution,<\/li>\n\n\n\n<li>And much more<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"Can Algo Trading Beat the Market?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/89tqK-3goEM?start=2&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><br><strong>Episode Highlights:<\/strong><br>01:03 Investing in the S&amp;P 500<br>04:06 Algorithmic Trading<br>08:38 Backtesting Algorithmic Trading Strategy<br>09:41 Algo trading vs. S&amp;P 500<br>11:03 Can Algo trading beat the market<br>19:09 Tips and tricks for algo trading<\/figcaption><\/figure>\n\n\n\n<p><strong><a href=\"https:\/\/www.youtube.com\/channel\/UCB2ZdaUN_rpSvNybJd3Gc6w\" target=\"_blank\" rel=\"noopener\" title=\"\">Click here to check out the BTA YouTube channel for more great trading content.&nbsp;<\/a><\/strong><\/p>\n\n\n\n<p>Released: May 16, 2023<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investing in an index like the S&amp;P 500 may seem like a safe bet, but it can often bring about huge drawdowns for index investors. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10598,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[20,391],"tags":[411,155,448,449,450],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/10595"}],"collection":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/comments?post=10595"}],"version-history":[{"count":1,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/10595\/revisions"}],"predecessor-version":[{"id":10597,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/10595\/revisions\/10597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/media\/10598"}],"wp:attachment":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/media?parent=10595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/categories?post=10595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/tags?post=10595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}