Sunday, October 08, 2006

Automatic Trading

Automatic or Automated trading is now becoming the new frontier for investors in any market, to become fascinated and drawn to.

Simply put; automated trading is where a computerized system is performing the market orders. It would stand to reason, that a machine that can calculate millions of computations a second, properly record and compile information, as well as execute commands faster than we can think - that this tool should become the method by which all traders in the future will use.

I believe, that soon enough, each trader and every new speculator that invests in any financial market, will have to their disposal an automated trading system that will perform all the functions they require. Automatically, with or without the guidance of the investor.

Automatically performing market orders by putting in BUY SELL and CLOSE orders, is becoming easier to understand. As investing grows in the stock and forex markets, so do the medium of software platforms available to the investor to use.

As for now, the mist widely understood method of adding some 'kick' to the trading platform that is used, has been to add automated trading scripts.

The trading platform that I enjoy using is the Meta Trader from Metaquotes (www.metaquotes.net). This is the platform that our FCM uses, and I got to say; its pretty good. There are features in it, that let you create your own custom scripts - everything from custom indicators to automated trading.

The guys from Metaquotes get my full respect as fas as their attention to detail and user experience. With my software and technology background, I can say that I am impressed by the professionalism expressed within the make-up of this platform. I'll talk more about the Metatrader latter.

With excellent programs coming out every year, there is no doubt in my mind that there will be a huge demand for automated trading capabilities built into these platforms.

We shall wait and see.

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