Stocks & Commodities V. 24:3 (22-28): The Automated Daytrader by Lee Leibfarth
Here’s how daytraders can use different levels of trade automation.
Technology has played a vital role in allowing retail traders to compete in markets where, traditionally, only institutional and professional traders have been able to profit. Daytrading simply couldn’t exist without high-speed Internet connection, reliable trading software, or direct-access trading. Many of the high-end trading platforms and features only available to institutions as of a few years ago have become both affordable and practical for daytraders. In addition, high-volume retail traders, or daytraders, have become the target market for much of the advanced trading technology available now. One of the most popular examples of this new wave of trading technology is trade automation.
Initially, many traders viewed trade automation as a mystical “black box” that arbitrarily generated trades. This early perception of automation may have led some traders to disregard the technology for fear of losing control over their trading. While you can buy preprogrammed automated strategies that do not disclose trading logic, there are varying levels of
trade automation that savvy traders can customize to
fit their needs.