| There are a number of wonderful features in the | | | | and that during periods of market performance |
| technological arenas in a variety of sectors of the | | | | switching, an automated program would fail miserably. |
| world's markets. We now have the best, most | | | | But, what many of the early pundits did not account |
| efficient methods of communication, of information | | | | for was the ability of automated algorithms to be |
| sharing, and even automated analysis software for a | | | | made as a self-learning entity that could account for |
| variety of different applications. All over the globe, | | | | these switches. And, when acting in large enough |
| cheating students are being busted by copy and | | | | numbers, human action is depressingly, frighteningly |
| pasting essays straight off of the Internet by | | | | predictable in numerous ways. |
| teachers using copy scanning software that | | | | There are two primary ways in which automated |
| automatically analyzes each essay and determines | | | | stock trading programs are superior to human |
| where it was copied from, quickly, efficiently and | | | | brokered and managed stock trading systems. |
| error free. This same sort of technological prowess is | | | | First, human biases play no part in an automated |
| being applied to stock market trading as well, with a | | | | analysis program, so they are able to render and |
| number of stock trading programs coming onto the | | | | present a dispassionate, rational view of current |
| market. | | | | market conditions. Also, because automated trading |
| These automated trading programs are far | | | | programs do not possess the numerous human |
| outperforming their human stock broker | | | | biases and emotional reactions that can often hinder |
| counterparts, realizing a greater ability to not only | | | | human stock market brokering or fund management. |
| accurately read the current and near term markets, | | | | Second, automated trading programs are able to |
| but to effectively recommend beneficial courses of | | | | analyze a wide breadth of data at an accelerated |
| action for a variety of investment styles. | | | | rate. Human fund managers suffer from the same |
| There are a few reasons why this software is so | | | | limitations that all humans do, they experience |
| much more accurate than human stock brokers and | | | | fatigue, they have bouts of boredom, and they can |
| managers, and mostly all of stems from the | | | | loose focus when going through large reams of data. |
| numerous human limitations. One of the initial, early | | | | Things can often be missed. With an automated |
| arguments against the success of automated stock | | | | stock trading program, the algorithms never tire, and |
| trading programs was that an automated system | | | | the analysis is as clean and crisp at hour 10 as it is at |
| could not account for unpredictable human action, | | | | hour one. |