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HFT Scrutinized, Automated Trading Strengthens (part 2)

  
  
  
automated trading

Our previous blog covered the main reasons that high frequency trading has been looked at for regulation within other countries' stock markets.  This blog will continue and will look at why it is important, what implications it has for the United States' markets, and finally how regulation of high frequency traders would help automated traders.

High Frequency Trading Scrutinized, Automated Trading Strengthens

  
  
  
high frequency trading

As pressures for high frequency trading regulation are rising globally, it is only a matter of time before the United States and the Securities and Exchange Commission (SEC) must take a look at its' own policies.  Otherwise it risks losing investors in its own stock market who wish to trade other countries' markets in order to avoid high frequency traders.

High Frequency Traders Aren't Doing Well, but Automated Traders are!

  
  
  
automated trading

In a recent announcement by Paul Rowady, of the Tabb Group, stated that the Fed's artificial inflation of the stock market due to Quantitative Easing #3 (QE3) was making it very difficult, if not impossible for high frequency traders to participate in trading the stock market.  Because their trading is based on the past and what has previously occurred, the current circumstances are highly unprecedented and are effecting market conditions differently than expected.  Because of this, it is rendering their algorithms useless under current conditions. 

Why You Should get a Trading System

  
  
  
trading system

One of the great things about a trading system is that it is relatively hands off.  This allows people the same amount of interaction in their investments that they are typically used to now.  So why is this important?

Why Algorithmic Trading is Beneficial for Experienced Traders

  
  
  
experienced trader

The great thing about the CoolTrade system is that whether you are a veteran investor who has been day trading for years, or new to personal investments and automated trading, there is something to help you in your trading efforts.  So what does our robotic trader have to offer those who know more than the average trader?

Avoid Get Rich Quick in Algorithmic Trading

  
  
  
get rich quick

One sound piece of advice that is referenced by critics of algorithmic trading is that you should not believe any of the hype that some products advertise, which claim guaranteed huge returns in a short amount of time.  It is ridiculous to think that you can make the same sort of money described at the end of my previous blog regarding my example of casinos and human error.  If used correctly, the system should be a make money slowly over time. 

Even high frequency traders don't plan to make that percent of return.  Instead they trade with the mass bulk of millions of shares, however buying this many shares and trading it on a single cent move is a ten thousand dollar gain.  And this is being done tens of thousands of times a day.  This unfortunately is unrealistic for almost every normal trader out there to execute.

Robotic Trading Systems Announces Free Training and Technical Support

  
  
  
robotic trading systems

Scottsdale, AZ May 08, 2012

Robotic Trading Systems, the exclusive reseller of the CoolTrade Robotic Stock Trading technology, announces Free Training and Technical Support for new users. The company has agreed to include these services at no additional charge to assist clients who wish to utilize Robotic Trading technology to self-manage their savings and investments.

Profit in Bear Market with Stock Trading Software

  
  
  
recession

Can you imagine if someone in 2007 called you up and recommended that you close out all of your long positions and just run a short strategy.  If you would have shorted pretty much any US Bank you could have literally made a fortune.  The smart money and stock trading software did. They recognized that that the music was about to stop and took massive short positions on the banks and markets and made a fortune. Many of them were millionaires who became billionaires almost overnight.

What is Algorithmic Trading?

  
  
  
algorithms

Algorithmic trading goes by a lot of different names.  These include automated trading, algo trading, black box trading, and robo trading to name a few.  Algorithmic trading is the use of electronic systems to enter trading orders based on algorithms which factor considerations such as timing, price, or quantity of stock.  This is typically done without any human intervention. 

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