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Automated Investing: Riding the Algo Wave
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The Unstoppable Rise of Automated Investing
In today's fast-paced financial world, a seismic shift is underway. Investors are increasingly turning away from traditional methods and embracing the power of automation. Automated investing, often powered by sophisticated algorithms known as robo-advisors or Expert Advisors (EAs), is no longer a niche trend – it's rapidly becoming mainstream. But why the surge, and what does it mean for you?
The Numbers Don't Lie:
The growth statistics are staggering. Depending on the source, the global robo-advisory market, valued between $6.6 billion and $11.8 billion in 2023/2024, is projected to explode over the next decade. Forecasts predict market sizes ranging from $21 billion to a staggering $116 billion by 2032/2033, with Compound Annual Growth Rates (CAGRs) frequently cited between 17% and over 31%! Assets Under Management (AUM) in the broader digital investment space are expected to surpass $3 trillion globally within the next few years.
Why the Shift?
Several key factors are driving this revolution:
Accessibility: Automated platforms break down barriers, offering lower minimum investments and easier onboarding compared to traditional wealth managers.
Cost-Effectiveness: Lower fees are a major draw, making professional-grade portfolio management affordable for a wider audience.
Convenience: Manage your investments 24/7 from anywhere via user-friendly online and mobile platforms.
Efficiency: Algorithms handle complex tasks like portfolio construction, rebalancing, and even tax-loss harvesting automatically.
Demographics: Tech-savvy younger generations (Millennials and Gen Z) naturally gravitate towards these digital-first solutions.
Essentially, automated investing democratizes access to sophisticated financial tools, offering efficiency and cost savings that are hard to ignore.
Exploring Automated Opportunities: Fusion & Beastmode by Samuel & Co Trading
Specialised algorithms offer unique approaches to navigating specific markets within this burgeoning field. Today, we'll look at two EAs from Samuel & Co Trading: Fusion and Beastmode, incorporating their recently available performance data.
(Disclaimer: Performance data is based on provided Myfxbook stats ending April 29/30, 2025. Past performance is not indicative of future results. Always conduct thorough due diligence before investing.)
Fusion: Targeting GBP/USD Fluctuations
Focus: Fusion is designed specifically for the GBP/USD currency pair, aiming to capitalize on short-term price movements.
Strategy: It employs an automated strategy, described as using hedging techniques when a trade moves against the initial position. It operates automatically as an EA.
Performance (Since Jan 22, 2020 - Apr 29, 2025): https://www.myfxbook.com/members/sandctrading/samuel-co-trading-fusion/4484527
Total Gain: +345.65%
Absolute Gain: +222.98%
Max Drawdown: 34.09%
Monthly Avg: 2.35%
Opportunity: Fusion offers investors a way to gain automated exposure to the GBP/USD market. Its historical performance shows significant gains over the tracked period.
Considerations: The 34.09% maximum drawdown highlights the peak gain to the peak low. Considering it has run through over five years, this is considerably impressive. Potential users must be comfortable with the possibility of equity swings. The exact nature of the "hedging" strategy remains a key point for due diligence.
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Beastmode: Taming the Dow Jones 30
Focus: Beastmode targets the U.S. Index, Dow Jones 30 (DJ30), providing automated exposure to 30 major US companies.
Strategy: Like Fusion, it's described as a "hedging tool at its core" and operates as an automated EA.
Performance (Since Jan 08, 2020 - Apr 30, 2025):
https://www.myfxbook.com/members/sandctrading/beastmode-yldfx-live/4802208
Total Gain: +313.01%
Absolute Gain: +197.24%
Max Drawdown: 48.56%
Monthly Avg: 2.22%
Opportunity: Beastmode provides a hands-off approach to trading a major US index, demonstrating strong historical gains since early 2020.
Considerations: The 48.56% maximum drawdown is high, indicating that the algo has traded through turbulent times, weathered the Covid market crash and the Tariff crash.
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Comparing the Algorithms with Performance Data
Feature | Fusion | Beastmode |
Target Market | GBP/USD Currency Pair | Dow Jones 30 (US Index) |
Strategy Type | Automated Hedging (Short-Term Forex) | Automated Hedging (Index Trading) |
Total Gain | ||
Max Drawdown | 34.09% | 48.56% |
Monthly Avg | 2.35% | 2.22% |
Live Since | Jan 2020 | Jan 2020 |
Cost |
The Bottom Line on Automated Investing
The trend towards automated investing is undeniable, driven by clear benefits in accessibility, cost, and convenience. Algorithms like Fusion and Beastmode represent specific opportunities within this trend, offering specialised, hands-off approaches to trading with documented historical performance.
However, the allure of automation and high historical returns should not overshadow the significant risks involved during volatile markets, clearly highlighted by the drawdowns. Before considering any automated trading system:
Understand the Strategy: What market does it trade? What are the entry/exit rules? How does it manage risk (especially losing positions)?
Analyse Performance & Risk: Look beyond total gain. Maximum drawdown is a critical indicator of risk. Are you comfortable potentially losing 30%, 40%, or even 50% of your capital temporarily? If not then reduce lot sizes during volatile periods
Assess Your Risk Tolerance: Ensure the algorithm's risk profile aligns with your personal comfort level and financial situation.
Automated investing holds immense potential, but historical performance is no guarantee of future results. Strategy transparency and a clear understanding of the risks, particularly drawdown, are paramount. Choose wisely based on thorough research and your individual risk profile.
Stay informed, stay critical, and happy investing!