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Old Mar 27th, 2013, 02:53 PM   #1
profitloss999
 
 
Join Date: Dec 2012
Posts: 82
I have been wondering if it sounds too good to be true that an automated trading method makes money.

You do nothing, just relax and watch it making money.......

If automation works in trading, every institution would be making money. Then where does the money come from (who are the losers)?
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Old Mar 27th, 2013, 03:01 PM   #2
WS_MJH
 
 
Join Date: Feb 2011
Posts: 284
Automated trading is a lot like manual trading; there are some good traders/systems and many mediocre to poor ones. To get an idea, go to collective2 and see what's around. Though collective2 probably doesn't have a standout system.
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Old Mar 27th, 2013, 04:34 PM   #3
Nab
 
 
Join Date: Sep 2012
Posts: 45
Quote:
Quote from profitloss999:

I have been wondering if it sounds too good to be true that an automated trading method makes money.

You do nothing, just relax and watch it making money.......

It takes a lot of skill, effort and time to develop a working automatic system (and as well to keep it profitable over a long run). That's the thing you invest.

The amateur level things you find in the net (like c2, etc.) are mostly worthless crap.

The origin of the profit depends on the specific strategies your algos are following ...
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Old Mar 27th, 2013, 07:38 PM   #4
Craig66
 
 
Join Date: Sep 2006
Location: Auckland, NZ
Posts: 452
The problem is not automating the trading, the problem is know what/how to trade in the first place, this is the hard part. So if you have something, you can automate it and it will work, but then you have to monitor because nothing works all the time. If you can combine all of this, you might have something.
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Old Mar 28th, 2013, 08:18 AM   #5
2rosy
 
 
Join Date: May 2012
Posts: 464
Quote:
Quote from profitloss999:


If automation works in trading, every institution would be making money. Then where does the money come from (who are the losers)?
some firms are hedging or putting on positions and do not care about a few ticks of slippage where as the automated programs are capturing those ticks 24/7
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Old Mar 28th, 2013, 09:27 AM   #6
jnbadger
 
 
Join Date: Nov 2004
Location: Wisconsin
Posts: 1,646
Here we go again....

http://www.elitetrader.com/vb/showth...ight=automated
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