The Online Investing AI Blog

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If we created a time line of Automated Trading and compared it to a similar time line of, let’s say, internet technology, it’s a good guess that we’re probably in the late 1990s.

The technology is almost there. The ideas are peculating. And the early adopters are already in the pool.

Problems arise in the adoption and distribution of the technology. In the early days of the Internet, only a few people with dial-up access could go online and few saw the ultimate value of the Internet. It wasn’t until a few “killer apps” (like e-mail) arose that more chose to adopt online technology and reached its current stage of mass distribution.

Automated Trading is demonstrating a similar trajectory.

For instance, Automated Trading technology is being used by bigger investment firms. There isn’t a trader pushing a button for each trade. More than likely, Automated Trading systems are making the day-to-day (or minute-to-minute) trades for most investment firms.

However, individual investors tend to be skeptical of Automated Trading. Even though most of their money is being managed, in part, by computers, they would never segment a portion of their self-managed portfolio to a machine.

The key, then, is to create the e-mail of Automated Trading–the killer app that will promote adoption and increase the desire for distribution. The goal is to create a system that is predictable and reliable, while producing solid returns. Such a system would lead to broader adoption and expose new paths to distribution.

We believe such a system is just around the corner.

Related posts:

1. Automated Trading and other Revolutions
2. Automated Trading and the Internet
3. Automated Trading and the Singularity
4. Automatic Income Potential From Automated Trading
5. The Automated Trading Paradigm

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