What is an automated stock options trading program?

An automated stock options trading program is a software that automatically buys and sells stock options. It uses a predetermined system in an attempt to make money. The good thing about automated systems is that they are immune to fear and greed, which represent the greatest challenge to humans who try to make money buying and selling options.

What automated stock options trading programs are available?

There are many automated stock options trading programs available, and they can be purchased and downloaded on the internet. A Google search will generate thousands and thousands of options. Also, they can be purchased on ebay. The question is, how do you tell which ones are good? How can you trust that they really work?

Our research shows that many automated trading programs are merely optimized for historical performance. What does this mean? It means that the software system looks at what happened in the past, and then develops a system that would have worked in the past.

So, what's the problem? If it worked in the past, won't it work it the future? The problem is that the answer is a resounding maybe. Would you trust your money to someone that said, "The system will maybe work?" Would you get into an airplane with an engine that would maybe work? All of the optimization and back testing that goes into automated stock options trading programs does not mean that they will continue to work. This problem is know as curve fitting.

What's the solution? The solution is to introduce the requirement of predictability into the system. This can be done through walk-forward testing. This means that the system is tested on data that it has never seen before, data that was not used in the optimization and development process. If the system works on data that is new, then that means that there is a significant probability that the software is predictive, and it will continue to work in the future.

What if there were a way to get the best automated stock trading program, and have it tested by a third party to make sure that it really does perform, and is not merely curve fitted to historic data? There is. Online Investing AI has developed proprietary Artificial Intelligence technology to develop the most powerful automatic stock trading programs possible. And, we offer third party independent testing to prove it.

For more information, visit www.OnlineInvestingAI.com.