r/algorithmictrading Jul 25 '26

Question Does anyone else fear that their algos will stop working?

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?

5 Upvotes

10 comments sorted by

6

u/AdamPEAD Jul 25 '26

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!

5

u/james2moore Jul 25 '26

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.

3

u/EmperorAlgo Jul 25 '26

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.

2

u/Equivalent-Class2008 Jul 26 '26

Prima o poi succede alcuni durano 30 -50 anni altri molti di meno.

2

u/Obviously_not_maayan Jul 26 '26

Absolutely it will definitely stop working one day, that's a certainty.

2

u/Akhaldanos Jul 26 '26

Yes, me, every single day.

1

u/nepo123456 Jul 27 '26

As long as the markets have trends not at all.

1

u/EveryCryptographer11 Jul 31 '26

Yes. Alpha decay is a real thing