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Independent Algo Traders And Their Recipe For Success

4 min read

By Viraj Bhagat

This article talks about the various ingredients that have helped Independent Algorithmic Traders succeed, it encompasses their reasons, rules and pointers that have helped them become successful independently.

Here's what we'll cover in this blog:

The ease of technology, support of robust systems, and convenient accessibility globally - have taken trading to even individuals. This has led to a rise of Independent Algo traders. They are fast becoming the future of financial evolution.

When asked: Can Independent Algo Traders Succeed?”, my first response is “Why not?”.

It is not what you do, but how you do it that defines the fine line between success and failure.

Secondly, what is with the deal with asking this question? It has become a “Myth”, without any cause or reason, that independent traders cannot succeed.

On the flipside, it is worth noting that many active traders at one time started out as short-term traders. The growth might be slow and steady in some cases, as it is the learning curve that takes up a major chunk of your time. But if done well, if you’ve trained enough, and are implementing it, you would probably pick things up early on.

So, what is the reason Independent Algo Traders are so successful?

The secret to the success of Independent Algo Traders

Since it is simply understood, an Independent Algo Trader would trade by him/herself which would mean no splitting the profits, paying only for trading and avoiding brokers.

Let’s understand the reasons for their success.

Learning from failures - We learn from our mistakes. And often from failures. Successful traders seem to persistently keep trying to break even and start profiting from the trades they make. In short, they have just trained better than you.

Multiple Profitable Trades - Seasoned traders are quick to realise which of their trading strategies are working for them and which ones are working against them. Increasing the number of profitable trading strategies compensates for their losses.

Analyse This! - Tools intensely analyse and interpret data to provide you with some unbelievable outcome. While some are free, some are paid.

Discipline - Traders have to think on their feet. They cannot afford to slack around. Algorithmic trading ensures your emotions, gut feelings and hunches do not impact your trading strategies and their outcomes. In short, they create an atmosphere conducive to instilling discipline.

Psyche out the market - A trader focuses on understanding the psyche of the market itself - how the market moves, how the trends work, etc. It is often misunderstood that the trader interprets and analyse the market as per their psychology. They do so, but as per their knowledge.

Leverage others knowledge and experience - The integration of perspectives of many traders has the potential to put forth a compelling argument and establishing a unique viewpoint for you. Your mentors, fellow traders, their experiences, or simply a guy on TV talking about the markets could impart some wisdom that might just strike the right chords for you.

Good Reach - Algo Trading allows traders to build strategies more effectively, using various modelling techniques, manage risk better, utilising various instruments, etc. which helps them gain a good reach into the market.

What should aspiring Traders learn from Independent Algo Traders?

You always look up to successful people, your idols and stalwarts from the industry for inspiration and for tips. Traders mimic them, copy their moves and follow their words like the Holy Bible.

However, it is not just that. There are many qualities that have helped them establish themselves in this domain. Which ones? Let’s see.

Keep moving - For any trader, the learning should not stop. With technology evolving every day, one should stay updated, with all the happenings.

Trade & Repeat - Find your mentor, and learn from them. If not, Traders often prefer to understand what happened in the market that day by viewing the market recordings. They study them, analyse and then put their findings into practice.

Don’t focus on the problem - Traders wonder “How to solve this problem?” while they should be asking “What is the point of origin of the problem?”. A webinar held by reveals: What traders typically identify as psychological problems in trading are usually the result of an underlying problem and not the problem itself.  Successfully dealing with the issue means identifying and addressing its cause.

Subconscious Learning - Since you are frequently monitoring, and keeping a watchful eye, you have more than 200 learning trials every year. Somewhere deep inside, your brain is capturing this subconsciously. Focus and ye shall receive.

Spot it Sherlock! - Identify the most successful strategies, the most widely used and rule-based are generally preferred.

Building Skills - They constantly keep building their skills. Be it - decision making or the ability to understand patterns or to anticipate a move in the market based on previous experiences.

Simulators and Traders - Using simulation tools enhances your learning experience and you can grow understanding multiple market scenarios while you train unknowingly under the simulators.

Trading Process - The trading process can be controlled. When, how and what is traded is completely dependent on the trader.


Most important of all, it is very necessary that you are true to yourself and ask yourself this:

Is it meant to be for you?

But if you are not content about it, and at the end of the day, if you find yourself disappointed, then you should be wise enough to understand that you need to move on.

Let your passion for Trading drive you

It is your passion that often drives you towards success. If you are deterred by struggles or disappointed by the market, and still pursue trading will complete passion, it would likely drive you towards your success.

The mantra of being successful as an independent trader, right from how to become one, is beautifully explained in this blog. How To Become An Independent Algorithmic Trader?

There’s the journey of Rishav who moved to Algo Trading from Manual Trading, Eriz who was pursuing Pharmacy and became a Quant, or Mr. T K Raj who became an independent Algo Trader - many such success stories are out there that have proven this very question wrong.

Like every other venture in your life, you might fall before you taste success. But asking for the right kind of help, you might be able to get back up. Many traders quit even before beginning.

Makes you wonder, doesn’t it?

How would you incorporate all of this? How will you learn all this?

But most importantly - Where will you learn all of this?


It is never too late to grow in the field or planning to start your career in Algorithmic and Quantitative Trading. You can learn various aspects of Algorithmic trading with the Executive Programme in Algorithmic Trading (EPAT™) that equips you with the required skill sets to be a successful trader. Enroll now!

EOV webinar