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As far as I can tell, this is amazing. One could take trading systems previously designed to operate on large minimum balances of $50,000+ (so as to render the
by rl3 13y ago
As far as I can tell, this is amazing.
One could take trading systems previously designed to operate on large minimum balances of $50,000+ (so as to render the impact of transaction fees negligible) and run that same system on comparatively small account balances, perhaps even as low as $500.
In theory, the percentage returns in both cases should be the nearly same. Obviously a 25% annual return on $500 is a lot less exciting than a 25% return on $50,000. However, the fact it's now possible to even do this (again, as far as I can tell) is exciting.
As other comments have pointed out, trade execution quality may end up being merely average on this platform. But, if your trading system is operating on a sufficiently long time frame, then executions become far less important.
Concerning other comments regarding classification as a Pattern Day Trader and being required to maintain a minimum $25k balance, I believe it only applies to margin accounts. Obviously this means no short selling, but small loss, considering.