2. Is NeuroStrategy also available to private investors?
NeuroStrategy was developed for professional investors such as traders and
fund managers and is not offered for private use. There are several reasons
for this.
- NeuroStrategy is dependent on a supply of data of outstanding quality
for its analyses. It obtains this data from recognized data providers such
as Datastream. The data feeds already entail considerable monthly
costs.
- Although NeuroStrategy is very easy to operate, the evaluation of the
strategies developed requires the trained eye of the experienced trader.
- In order to use the system successfully, it is imperative to follow the
developed strategies on a daily basis. Sporadic trading on the
basis of the analyses of NeuroStrategy would be nothing more than a game
of chance in technological disguise.
- For many financial instruments, NeuroStrategy is only able to develop
profitable strategies through balanced risk management. The analysis of
the strategy models from our sample portfolio
demonstrates this clearly. Such strategies require frequent repositioning.
For private investors trading through their bank or online broker, the applicable
transaction fees are often too high to be able to implement the strategies
expediently in practice.
- Private investors are usually required to pay a fixed and/or minimal charge
per transaction. Our analyses show that with this type of fee and an active
trading behavior, relatively high minimum investments must be made in order
to realize gains after transaction fees. The minimum investment depends
on the current unit price of the traded stock and is often beyond the reach
of a private investor.
