Automated Stock Trading Software
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Automated stock trading also called Algorithmic (algo) trading and black-box trading or scalping, is the use of electronic or computer platforms for entering stock trade orders with an algorithm which executes programmed trading instructions whose variables include timing, price and quantity of the order with NO human intervention.
Automated stock trading is widely used by investment banks,
pension funds, mutual funds, and other buy-side (investor-driven) institutional
traders, to divide large trades into several smaller trades to manage market
impact and risk. Sell side traders, such as market makers and some hedge funds,
provide liquidity to the market, generating and executing orders automatically.
A special class of algorithmic trading is called HFT or high-frequency trading. Many types of algorithmic or automated trading activities can be described as HFT.
One third of all US and European Union stock trades
in 2006 were driven by automatic programs, or algorithms, according to
Boston-based financial services industry research and consulting firm Aite
Group. As of 2009, studies suggested HFT firms accounted for 60-73% of all US
equity trading volume, with that number falling to approximately 50% in 2012.
Over 40% of all orders were executed by algorithmic trading programs in 2006, at the LSE (London Stock Exchange), with 60% of all orders predicted for 2007 and even higher today.
American markets and European markets generally have a higher proportion of algorithmic trades than other markets, and estimates for 2008 range up to an 80% proportion in some markets. Foreign exchange markets also have active algorithmic trading (about 25% of orders in 2006). Futures markets are considered fairly easy to integrate into algorithmic trading, with about 20% of options volume expected to be computer-generated by 2010. Bond markets are now moving toward more access to algorithmic traders, as well.
It is estimated that the 300 securities firms and hedge funds that specialize in this type of trading took in a maximum of US$21 billion in profits in 2008.
Why should those hedge funds make all of the money? Why should you have to pay a hedge fund to make you money? Why should you have to pay a security firm to manage your money?
Not any more! Now YOU can have a supplicated, automated or robotic trading for your home computer! You can have the SAME advantage as the people that have the supercomputers underneath the NYSE trading floor, in your desk or laptop computer in your own home or office.
Automated, algorithmic and HFT have been the subject of much public debate since the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission said that an algorithmic trade entered by a mutual fund company triggered a wave of selling that led to the 2010 Flash Crash, widely known known as the flash crash event of May 6, 2010
The program that we promote had no problems countering the quick drop in prices on that day. While the Dow dropped 1000 points, our recommended stock trading software program was trading 81 position short, making money all the way down!
Brokers were pulling their hair out, not knowing what was happening and how
to deal with it. Sell everything? Sit it out? How lone will this last? Is this
the final day and doon of the stock market?
Meanwhile, computers are cool, calm and collected and can execute orders with precision, instantaneously, without any emotion.
That is one of the biggest strengths behind automated or robotic trading. NO emotion plus the speed that the program can execute trades (mere nanoseconds) and the great speed at which it can analyze what is going on in the market as a whole as well as analyzing individual stocks.
WHY Robotic Trading?
There are several Robotic Automatic Stock Trading Software programs available. There are so many imitators that pretend to be 100% fully automated but are not.
Many automated trading systems require the use of software that is linked to a direct access broker, and any specific rules must be written in that platform's proprietary language.
The TradeStation platform, for example, uses the EasyLanguage programming language.
NINJA The NinjaTrader platform, on the other hand, utilizes the NinjaScript programming language.
Wouldn't you prefer a software program that does not use any proprietary language? Does not need to be programmed by you?
The have a whole website/blog dedicated to "Support for automated trading systems using NinjaScript. Support for our ATI (Automated Trading Interface) used to link an external application such as TradeStation and eSignal to NinjaTrader." WHAT? WHY?
Wouldn't you prefer a program that does not use NinjaScript programming language? This limits the brokers that you can use and is a terror to program!
ZULU STOCK: There own website says "ZuluStock creates its own strategy to buy/sell a stock + Get instant access to top 100 picks & real-time data."
What are YOU going to do with the data? Why do you want someone else's picks? You DON'T need that!
Another one of their website says, "You choose among the many stock exchange experts and the signals will be automatically transmitted on your account." And then what?
They gave you 11 different so-called experts to choose from, but remember, these are human beings to and are still subject to emotion and THEIR own thoughts and biases.
That same websites says, "Zulutrade is not an infallible method to gain out of purse: you follow the orders of experts of the purse but these experts are the human ones above all" Could that be any clearer?
As mentioned above, by the CEO of Tradeworx, the human's brain is not designed for trading and is nowhere as fast as a computer is!
Many programs out just consolidate signals and charts and trends - but do not analyze for themselves and do the trading 100% automatically, without human intervention and the emotions that ensue.
/ Tsunami is another option but it has to be
monitored during every hour of trading; 5 days a week, because
it cannot execute trades on its own.
NYSE, NYSE MKT and NYSE Amex Options are open from Monday through Friday 9:30 a.m. to 4:00 p.m, so that means you are stuck at your computer 32 1/2 hours a week waiting for the computer to speak to you through its speakers, to advise you of a trade possibility.
It will simply announce the trades that you are supposed to do and YOU must
execute them manually.
By contrast, how would you like to find out about a software program that is even better?
Remember the day in May 2010
when the stock market DROPPED by almost 1000 points in just a short period
of time and then rocketed back in just 30 min? Where else or how else could
you liquidate 81 short positions and take a profit in 20 minutes!
If you were not utilizing an automated trader, that can short trade on it's own, you could have never taken advantage of this unique opportunity!
Trade Architect from TD Ameritrade. No Platform Fees or Trade Minimums!