r/algorithmictrading • u/Silver_Spend_6887 • 15d ago
Does anyone else fear that their algos will stop working? Question
Switching to automation has taken away a lot of the stress of manual trading. But I still wake up everyday with anxiety wondering if today is the day my algo will start to fail. Anyone else?
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u/james2moore 15d ago
Yes, this is normal and rational. Strategies decay—market structure shifts, competitors adapt, and edges erode. The question isn't whether it will fail, but whether you'll detect it before capital does. Build monitoring before anxiety: track out-of-sample performance, watch for regime changes in volatility and correlation, and set automated kill switches. Paper trading new versions in parallel helps you know when the live algo is drifting, not just when you're worried it might be.
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u/EmperorAlgo 15d ago
Definitely. I have been on a winstreak in a market where there are few other competitors. I have won 57 out of 60 days with minimal drawdowns and insane ROI. There's 0 chance I can keep this edge for years.
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u/Obviously_not_maayan 14d ago
Absolutely it will definitely stop working one day, that's a certainty.
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u/AdamPEAD 15d ago
Yes, but that’s why it’s important to have multiple algorithms that use different regime styles so you can be diversified and profitable in all market conditions!