What are the different types of automated business systems?

There are two ways of classification of automated business systems. One is based on whether algorithms are published. If algorithms are published, systems are called a "published system". Automated trading systems that are not published are referred to as "black cabinets" systems. The second method of classification of these systems is based on the type of algorithm used.

cycle studies, volatility and outbreaks are the most popular algorithms. Studies of the cycle combine cycles of different lengths for predicting peaks and DNA. Volatility systems generally focus on times when supply or commodity has low volatility, then enter the market with an increase in volatility. The price breakdown systems monitor the highest and lowest prices for a period of time, then enter the market when a higher or lower low minimum is reached.

After representing the automated trading system, it must determine when to terminate this position. Some systems use a sliding averagethe person's periods of time and then leaves. Another approach is to terminate as soon as the position is profitable or to abandon after a certain level of profitability. Most systems have a fixed amount of loss, which is the largest loss that the system is designed. The deadline for this amount is the "loss of tracks".

There are many computer programs sold as a black box trading strategy. Most of them are sold on the basis of “back testing”. If there is no substantial history of real -time trading or a large number of good results on data other than the most confident data, such as Monte Carlo simulation, using a real money system is the main gambling. It is not difficult to compile several rules and then optimize the system for five or ten years of trading data to bring the results of the oxenic, but such a system is unlikely to be profitable in the real world trading.

AutomatedTrading systems that are profitable exist. They were created by people with a very deep knowledge of physics working along people who will understand how the markets work very well. The creators work for investment or business groups that largely maintain a low profile. Like all areas of trading or investing in markets, the entrusting money for an algorithmic, automated trading system should be carried out with great caution and only significant research.