The Online Investing AI Blog

Automated Trading systems use computers to trade stocks and other assets. It may sound like science fiction, but computers are playing a more pivotal role in trading. Huge companies utilize computers to conduct complicated trades.

I know what you’re saying… how does that help you? All these big companies with deep pockets can invest in technology that you can’t afford.

But things are changing and advanced Automated Trading Technology will rapidly reach more investors and more self-directed investors.

There are a number of ways that Automated Trading is equal to–or better than–mutual funds as a tool for the self-directed investor. This performance should only improve over time.
Here are some of the major performance enhancements of Automated Trading:

• Automated Trading offers more benefits than the typical paths of investing.
• Automated Trading does not include the massive fee structure imposed by most mutual funds. It usually just requires a subscription and possibly a portion of the spread, which the investor is unlikely to see in any event.
• Automated Trading can trade more types of assets.
• Automated Trading can use more types of strategies.
• Automated Trading saves time.
• Automated Traders can create portfolios of strategies, like portfolios of mutual funds.

Once it reaches maturity, Automated Trading, in short, will combine the ease of a mutual fund with the ability to generate returns, like a hedge fund.