Anyone have a basic example of an automated algorithm for equities? I don't know how these work. So, I will venture my own basic idea to get flamed or added to. If you know how these really work, post it here. For stocks having a certain average daily volume, say, over 200,000 shares a day, find stocks with a bid ask spread of one half of one percent or better. Also filter with stocks having a beta under 1.25. Now we have stable stocks with workable volume, and wider bid ask spreads. Place bid and ask one penny ahead of the current bid and ask. Adjust bids and asks with beta-adjusted percentage movements in the S&P mini. It's incomplete I know. I thought of it, and typed it, in 5 minutes. For those who know, what's missing? What I don't understand most of all, is an automated system in stocks with news, or strongly trending stocks. I hear algorithms trade those markets as well as other markets. But, doesn't the algorithm keep selling, or at least selling and covering for small losses as soon as a loss is incurred?