The E-mini Automated Trading Advantage
E-mini, the trading name for electronic index, are investment vehicles that are based on various futures market indices.
These assets are popular with traders for several reasons. These reasons also make the E-mini a good match for Automated Trading systems. Systems that are optimized can use E-minis to access markets that were once the total domain of in-the-pit human traders.
Here are just a few reasons that Automated Trading systems make an interesting platform for trading E-minis.
Volume
E-mini trading has excess trading volume. Billions are traded each day. This means an Automated Trading system has little chance of bidding up (or down) an index to such an extent that it would alter the price drastically.
Versatility
While e-minis used to exclusively trade S&P index, the e-mini concept has spread to other futures indices. Dow Industrials, currencies, commodities and other markets are now traded with E-minis.
Adaptability
At Online Investing AI, we’re experimenting with using E-minis because our artificial intelligence technology can use the same indicators as inputs, just like stocks. Technicians can use moving averages, stochastics, trends, Fibonacci methods, short-term cycles and many other technical tools. And, likewise, fundamental and momentum trading systems can find similar inputs.
One final advantage of the E-mini: low price points. It’s possible to take a position in the various E-minis.
With those advantages–volume, versatility, adaptability, and price–E-mini trading makes sense for the independent investor and trader.
Related posts:
- Automated Trading and Futures
- Automated Trading and Index Funds
- Why Automated Trading And Manual Trading Are Compatible
- Why use an Automated Trading System?
- Automated Trading and Currencies
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