Do automated trading systems trade one stock/instrument or many?

Question

For example, I remember one person telling me that their trading system only traded a certain currency pair, and another telling me that theirs only traded an S&P 500 ETF. My question is:

Can a trading system be programmed to trade many different stocks/instruments? For example, could it screen its conditions on all stocks in the Nasdaq 100 rather just focusing on one? Or, could it possibly screen all stocks with defined rules (regarding market cap, exchange for example)? How does this work?

Thanks for your help!

Answer 1

For index funds, currency pairs, futures or commodities, it tends to be a specialized program designed with that security in mind since each has their own behaviors.



Automated trading systems can be designed to trade many stocks at a time, but keep in mind that the complexity of such systems increases dramatically because money/risk management change. Normally there is a filtering mechanism for the strategy and then a money management technique based on the timeframe (daytrade, swing trade, long term).



The short of it: You can define a rule for anything you can get a reliable data feed on.



I recommend to join or visit this site as it contains a wealth of information (got to sort through people's opinions though, use your own judgement; it has a list of brokers with reviews also): http://www.elitetrader.com/



Often, proprietary brokers will put hard limits to protect from programming errors, for example: limit the dollar amount of all assets long or short to $100000. This can help when the system first goes live, especially if high margin is used. I recommend avoiding proprietary firms unless you have experience with them, as they can be risky if you don't know what you're getting into; I will not be listing any here.



If you are programming the system, then it's useful to have an API available. I personally use Visual Basic 6 and the broker's API for simplicity. Some brokers have their own scripting languages or interfaces.



These are some brokers that I've seen, but I haven't dont live trading in awhile so I cannot guarantee any specific results:



TradeStation (when you want all the bells and whistles, must have $30000, but well-supported scripting language and good interface) - http://www.tradestation.com/automated_trading/howitworks.shtm



Interactive Brokers (simpler platform, similar rates, splits forex spread and commission which makes it more transparent; API for Visual Basic 6; has lots of user-created 3rd party automation or assisted trading tools) -

http://individuals.interactivebrokers.com/en/p.php?f=programInterface&ib_entity=llc



MB Trading - heard it was a decent broker, don't know much about it. http://www.mbtrading.com/



Good rates for trading are $0.01/share (low volume) and $0.005/share (mid-high volume). Most use smart routing to ECNs and market makers (whoever has best price), for liquid instruments execution isn't really a deciding factor. Just make sure your automated trading strategy has a failsafe in case of a market crash (good money management strategy should mitigate the risks).

Answer 2

1

Answer 3

Binary options let users trade in currency pairs and stocks for various predetermined time-periods, minimal of which is 30 seconds. Executing trades is straightforward. The system uses user-friendly interfaces, which even an 8 years old kid, can operate without having to read any instructions. But winning trades is Not easy.

Binary trading is advertised as the only genuine system that lets users earn preposterous amounts of money in ridiculously short period of time. Advertisers try to implicate as if you can make $350 every 60 seconds; if it was true then binary trading would truly be an astonishing business.

However, does it make any sense? Can every trader make tons of money in binary trading? Who is actually paying all the money or the profit to traders?

The first challenge is finding a trustworthy binary broker; secondly, you need to find a binary trading strategy, which you can use to make profits consistently. Without an effective trading strategy, there is no way you can make money in this business.

Learning a profitable trading strategy is possible, You should watch this presentation video https://tr.im/4f450

It's probably the best way to learn how to win with binary option

Answer 4

Automated trading systems can and do have the capabilities of trading more than one security, I'm not sure of the currency but the programming logic should follow securities.



Trading system do scan many securities, There's not enough room here to explain how it works if you looking for programming logic.



If your looking for all the details in designing a system, this will cost you big bucks. Some one may want to take the time to list the details, but I wouldn't unless a substantial down payment was made.

Answer 5

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/ed075

Answer 6

Binary options trading is very popular in many countries around the globe. However, most people still ask the question "can you really make money in binary options". The short answer is that yes, in this website they give you a few tips on how you can make money trading binary options https://tr.im/4llRt



You can make money online with binary options trading if you only trade at legitimate binary options brokers and learn the fundamentals of binary trading and employ proper trading startegy.

Answer 7

No. The only reason you are "interested" is that these schemes are heavily promoted. Forex is just another commodity. You might equally be interested in commodities such as gold, cotton, or eggs. Many forex brokers advertise commission free service. They profit with the bid/ask spread, but their spread is larger than traditional commodity firms, which charge a commission. Pros prefer paying a commision to the "free" brokers. I highly suspect your first responder is a scam. I'd be wary of taking his links. This YA category is filled with more scams than any other category I know of.

Answer 8

Depends on the strategy employed, most prob trade one or two but some prob can trade all stocks at the same time.

Answer 9

the best trading software http://tradingsolution.info

i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has great impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is important in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don't trade emotionally anymore.

if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.

Answer 10

complicated aspect. look with google and yahoo. that can assist!