Automated Trading

Written by
Automated Trading Automated Trading David Cohn

Many clients come to Emerald Trading Technologies wanting to automate their trading.   The advantages of automated trading can be significant:

  • No fatigue: precise calculations with no errors
  • Rapid, complex calculations that are not manually possible
  • No emotions: to interfere with making calculated entries or exits
  • Rigorous back-testing: verifies how well the strategy performs across history and different symbols.
  • Inattentive or Unattended trading: freeing the trader to do other things. The difference between Inattentive and Unattended trading is important and will be discussed later.

But automated trading has disadvantages:

  • Cannot incorporate trader’s market intuition that cannot be reduced to rules
  • Cannot incorporate some visual patterns which the human eye can readily see, but the computer cannot “see”
  • A new broker and trading environment may be required, as most brokers do not offer sophisticated automated trading.
  • Special expertise is often required to automate a trading system.
  • Significant time and effort may be required of the trader to test and tweak the automated trading system.

Emerald Trading Technologies can help with the entire “life cycle” of automating a trading system.

Read 70 times Last modified on Saturday, 29 August 2020 16:53

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