| All throughout the close of the 20th century, human | | | | market trading. |
| civilization was promised a veritable wonderland of | | | | Here are two ways in which automated trading |
| technological innovations and advancements that | | | | systems far surpass traditional trading systems. |
| would completely revolutionize the way in which we | | | | They Eliminate Human Biases |
| lived, worked, loved and even dreamed. From jet | | | | One of the biggest things that automated systems |
| packs and flying cars to robots and condos on the | | | | have going for it is the fact that they completely |
| moon, human kind expected the 21st century to be | | | | eliminate the biases and prejudices that come with |
| a completely New World Order. Of course, now that | | | | human stock brokering and fund management. Say a |
| we are collectively entering into the second decade | | | | particular trading broker once got burned on soy |
| of the 21st century, we are beginning to realize just | | | | bean futures. Twenty years later, he or she now |
| how far off of the mark the predictors and experts | | | | completely dismisses the market of soy bean futures |
| really were. | | | | and does not factor them into the market analysis. |
| Instead of flying cars and jet packs, we now have | | | | An automated system harbors no such bias, and is |
| super-slim computers and a first class World Wide | | | | able to make full use of the advantages of all types |
| Web. And though the latter two are no slouches, | | | | of investments. Truly, nothing is off of the table with |
| they are not really what one would consider as | | | | an automated trend trading system. |
| "grandiose." | | | | They Mitigate Human "Emotional" Error |
| But there is one innovation that is making some | | | | Automated systems can also mitigate human error, |
| serious noise, and is poised to completely change the | | | | because they have a set pattern recognition |
| way that investors make money. In fact, with this | | | | algorithm that is responsible for analysis, and every |
| new innovation, stock market crashes may become | | | | move that it suggests is based upon preconceived |
| a thing of the past. The innovation is an automated | | | | patterns. With human analysis, this is not true. A |
| trend trading system that can nearly perfect the | | | | human stock broker faces the problem of being |
| way in which investors deal with the markets, and | | | | caught in a particular situation that he or she could |
| eliminate a large share of the risk inherent with stock | | | | not predict, and overreacting in one way or another. |