Automated trading V. Live Human trading
Posted: Wed Nov 15, 2006 12:03 am
I've read that automated trading is inferior to direct human trading because the market is psychological in nature; Programmed computers cannot adapt to the complexity of human reaction, and thus fail if not constantly modified. Naturally a human trader has the best chance at reacting favorably by quickly interpreting what s/he sees. If automated trading is profitable, then there IS a holy-grail no?
On the other hand, coding your strategy rules into a computer seems like you would only be eliminating the most poisonous factor in trading: emotion.
If you have any experience with automated trading and human based trading please post with what you have learned.
On the other hand, coding your strategy rules into a computer seems like you would only be eliminating the most poisonous factor in trading: emotion.
If you have any experience with automated trading and human based trading please post with what you have learned.