What are the different types of automated business software?

Automated business software can be classified according to the market that trades or by user type. General market types are stocks, commodities and currency. Users are individual traders or large business funds. Individual traders often use retail software and funds develop their own. The exact mechanics of these algorithms are carefully guarded. Funds of stock trading often use so -called mobility algorithms, often combined with steam trading. The mobility algorithms earn a short -term, high volume price change. Trading pairs means choosing two shares in the same sector, then buy stronger and shorten the weaker. Characteristics of price distribution on the Allow's monetary market this approach to success while it is marginal in stock trading. Trafficking in momentum is used in some automated business software that uses funds to trade with grain futures. At least one Fund uses the physics of fluid dynamics to a stock tradethe market.

On the other hand, the retail software

tends to offer a nice look on the computer screen combined with the ability to place several orders at the same time as the screen button is pressed and claims to be an "automated" business software. The trader is still obliged to monitor the market, decide what stocks, futures or currencies belong to his basketball with the button, and then decide when to enter the store. Some retail software offers the coding interface that the trader can use to write and test his own algorithms.

Another variety of retail automated business software is referred to as black box trading. Algorithms used by theSoftware are not communicated to the buyer and often does not have the appropriate opportunity to test whether the software is actually profitable. Buyers are asked to accept the belief that the software has been profitable in the past and will be in the future. Trading systemsWith black boxes are offered for trading with stocks, futures commodities and currencies.

Funds that use automated business software are tested extensively. They use Bootstrap and Monte Carlo testing to see if the system is profitable in the laboratory. When they find algorithms that succeed in their test mode, they test it in real time. The software generated by the fund controls all aspects of trading: determines how much trade, what to trade and when to trade, and commission orders directly on the stock exchange. A single trader must imitate the fund's test strategy, if he has reasonable prospects for profit trading.