machine trading replacing us?

Discussion in 'Trading' started by newguy1, Jul 3, 2005.

  1. newguy1


    will daytraders be gravely hurt by computer based trading in the future?
  2. actually if you started trading in the past 5 years you have been trading against machines
  3. What do you call "computer based"?
    Isn't everybody now a days trading with a computer?

    To make computers smart in trading you need traders to tell computers how to trade. But again at that time there will be programmes that will analyze the computers behaviour and act on that behaviour. So computers that attack traders, will be attacked by other computers that will use neural networks or algorithms to figure out why other computers generate buy and sell signals.
  4. Learner


    Are there any reliable statistics of how any % daily volume is traded by programmed/automated systems?
  5. I am guessing that it would be pretty high on stuff like the eminis... these kind of instruments lend themselves to systemized trading...
  6. No. As previously stated you are already trading against machines. Most traders already are highly automated and have developed automated or semi-automated systems. Even if you are actually manually pulling the trigger on a trade the odds are favorable that the decision was made by one or more automated or semi-automated systems.
  7. bolter


    Program Trading already constitutes approx 75% of NYSE volume.
  8. Learner


    Where are you get the data from?

    Thanks 4 the info.
  9. omniscient

    omniscient Guest

  10. Anywhere there is big money to be made...there is big money backing approaches to making it..

    Direct access killed Wall Street´s commission business...thus their focus is to make it some other way with equities as can be referenced in the quarterly earnings reports of the publically held entities...and through some reporting hedge fund entities...

    Also there are some pseudo front running programs that have been designed by the bigger market makers....

    What is interesting here is that they have ended up fighting amongst themselves...

    Look...having big computer players is good for daytraders...they actually create..not take away opportunities...

    Remember...Ferraris are to drive...and run circles around big load hauling trucks....

    Good trading...
    #10     Jul 3, 2005