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tdev
Registered: Mar 2011
Posts: 8 |
04-30-12 08:26 PM
Hi there,
I can see a lot of offerings of Forex robots but cannot really find anything for stocks. Well, may be except for MARL 
I wonder if selling stock trading robots is a legal business. My guess is that Forex is not regulated and hence it is possible to provide financial advice (i.e. robot), while for stocks it is not really possible due to regulations.
Could anyone shed a light on the topic?
Thanks.
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Occam
Registered: Apr 2009
Posts: 471 |
04-30-12 11:25 PM
Quote from tdev:
I can see a lot of offerings of Forex robots but cannot really find anything for stocks. Well, may be except for MARL
I wonder if selling stock trading robots is a legal business. My guess is that Forex is not regulated and hence it is possible to provide financial advice (i.e. robot), while for stocks it is not really possible due to regulations.
Could anyone shed a light on the topic?
Thanks.
Sorry for not answering your question directly, but are you not aware that nearly all (if not 100%) of "forex robots" that are sold to the public are flat-out frauds? There is absolutely no incentive to sell a profitable automated system publicly -- it just doesn't make sense for the creator of such a system to do anything other than trade it themselves.
http://www.wired.com/threatlevel/20...-picking-robot/
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tdev
Registered: Mar 2011
Posts: 8 |
05-01-12 08:56 AM
Quote from Occam:
Sorry for not answering your question directly, but are you not aware that nearly all (if not 100%) of "forex robots" that are sold to
Still, this does not answer the question why there is an asymmetry between stock market and forex in terms of supply of automatic trading strategies.
As far as I understand the creators of MARL were shut down not because of the fraud but because they provided [illegal] financial advice.
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JamesL
Registered: Sep 2008
Posts: 2060 |
05-01-12 10:35 AM
no, it was fraud:
Investors were led to believe that stock recommendations were based on a complex, “statistically driven analysis,” the SEC said.
But instead, the robot’s picks were part of a so-called “pump-and-dump” scheme, the SEC said.
The defendants received an estimated $1.8 million from stock promoters the SEC did not name, the SEC said. The robot would tout the promoter’s stocks. The promoters would then “dump” or sell their shares after “Marl” the robot instructed the twins’ customers to buy shares, the SEC said.
http://www.wired.com/threatlevel/20...-picking-robot/
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JamesL
Registered: Sep 2008
Posts: 2060 |
05-01-12 10:36 AM
Quote from JamesL:
no, it was fraud:
Investors were led to believe that stock recommendations were based on a complex, “statistically driven analysis,” the SEC said.
But instead, the robot’s picks were part of a so-called “pump-and-dump” scheme, the SEC said.
The defendants received an estimated $1.8 million from stock promoters the SEC did not name, the SEC said. The robot would tout the promoter’s stocks. The promoters would then “dump” or sell their shares after “Marl” the robot instructed the twins’ customers to buy shares, the SEC said.
http://www.wired.com/threatlevel/20...-picking-robot/
more:
http://online.wsj.com/article/BT-CO...420-713691.html
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