Automated Trading, Agents, and BOTS
An expert advisor may be manually traded -- the trader waits for the signal and then executes the order manually, or, more commonly, automatically traded -- the expert advisor executes the trade as it occurs. Computers do not get tired or hungry. They can make money for you 24 hours a day -- if the program is good. At the top end, automated trading has eaten away at the old-style, discretionary seat-of-the-pants trader. This is in trickle-down to the retail level today; more and more small traders are embracing automated trading strategies.
Because of this new popularity of automated trading, many brokers now offer tools and accommodations for automated trader programs.
It may well be because I am older now but I simply do not fully trust most of these programs, especially the ones that trade very short term. At the institutional level, I believe a reckoning is on the horizon. In my humble opinion, an experienced trader can add synergy to any automated trading system. I wince when I see an advertisement for a trader who has a PhD in physics or computer science and the comment, "No trading experience required."
By Michael Duane Archer