Tag Archives: futures

Trade Everything: How Technology is Opening New Markets

The types of derivatives and exotic derivatives that are traded are pretty amazing. You can take positions on everything from interest rates to weather, from pig futures to soybeans.

You haven’t seen anything yet. The number of items that can be traded is increasing, another sign of advancing technology and the the continual search for new wealth building opportunities.The types of assets you can trade is also becoming more varied.

Just take a look at Intrade.

Intrade is a prediction market that’s drawing a lot of interest. The prediction market allows people to trade typical commodities, like gold, oil, and currencies. Political outcomes, like the 2008 Presidential elections, are among the most popular trades on Intrade.

But, there are markets for a wide and weird range of other assets and scenarios.

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Automated Trading and Investing

As Automated Trading becomes more and more popular, people are wondering exactly what it is and how it relates to investing. Can Automated Trading systems be used to create a viable investment portfolio?

First, let’s examine the difference between human trading and investing. Human trading is the process of buying and selling stocks, options, futures, or currencies (on the Forex market). The internet has brought the world of trading within reach of anyone with $1,000 and an internet connection. Yet trading is quite different from investing.

Investing is more of a long term process, when the investor consistently makes money over time. They may buy stocks, real estate, businesses, art, or anything else of value. The successful investor grows their net worth as the assets that they purchase increase in value. And, they many never sell the assets. Many successful investors such as Warren Buffett practically never sell.

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What is an Automated Trading Strategy?

As Automated Trading becomes more and more popular, many people are curious about it, and exactly how it can make money for them. This is also known as algorithmic trading. What exactly is an Automated Trading strategy?

An Automated Trading strategy is a specific set of rules that a computer uses to trade. We can have different strategies for different markets, including stocks, options, commodities and currencies (known as Forex). One of the major benefits of Automated Trading is that these strategies are executed with the cold precision of a computer. There is no room for human emotions, second guessing or regret.

What is it like to have an Automated Trading strategy working for us?

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Automated Trading and Futures

Futures contracts are one of the most traded markets. Many traders love them because they offer high leverage. That means that it is easy to make a lot money very quickly. And it also means that it is possible to lose just as quickly.

Most traders don’t think about the possibility of losing money. They love the game. It’s exciting when you win, and painful when you lose. They may not win all the time, but at least they are entertained. It’s better than sitting in an office typing emails and suffering through boring meetings.

We need to consider the possibility of losing money if we want to make money consistently. And, to really do this effectively, we need to measure risk. That’s why Automated Trading systems are well suited to trading futures contracts. They use statistical analysis to measure the risk of any given trade. And, they can use this risk measurement as an input to an Artificial Intelligence system.

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Automated Trading and Kaizen

For many people, Automated Trading is a strange and mysterious idea. Like any new technology, I suppose it takes some getting used to. Imagine how many people have trouble understanding Twitter. And Twitter is a multimillion dollar company and a behemoth of the Internet.

Automated Trading is the idea of using a computer program to buy and sell stocks or other assets. These assets could be currency, options, or futures. It turns out that since computers are very good at following directions and running a program, there’s a great potential to create systems that make money through trading these assets. The idea is fairly new and not yet popular. But we believe in just a few years it will become very common.

What about kaizen? Kaizen is the idea of making big progress over time through tiny incremental improvements. The Japanese economic miracle was driven directly with kaizen. The first Toyota Corollas and Honda Accords that came to America were a far cry from the comfortable machines they are today. They were tiny, uncomfortable and very economical. Yet this metamorphosis was created through a tiny improvement each year. After 10 or 20 years, it’s hard to recognize the original model.

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Autotrading: What is it? Can you do it?

Autotrading, simply put, is a service that automatically trades your brokerage account. It enters the buy,sell  and stop loss orders. Our Online Investing AI system, currently in beta, and the systems we are developing will issue orders based on advanced technology and genetic programming.Money Machine

Autotrading Online Investing AI takes the guess work–and just the plain old work–out of investing. But you should make sure it’s an investment strategy that works for you.

So, it autotrading for you? Here are a few tips to determine if you are ready to autotrade stocks.

* Do you have a broker that offers autotrading? There’s a growing list, including OptionsXPress, OpenECry, FXCM, Gain Capital, IFX, FuturesBetting, and Interactive Brokers. But, you still want to check with your broker, or find a broker that handles autotrading.

* How much money is in your trading account? Active trading can mean higher trading fees. On smaller accounts, these higher fees can cut into your return. If this is the case, either increase your account level, or find a system that doesn’t trade as frequently.

* What’s your trading philosophy? Do you want to trade frequently? Day trade? Intra-day trade? Stocks? Commodities? Currencies? There are systems to address all these and, eventually, you’ll be able to access Online Investing AI systems to address these strategies.

* What’s your risk level? Despite increased returns and lower risk, we recommend you never put all of your eggs in one basket, nor do we expect you to play the market with the family milk money. (Is that enough cliches for one sentence?) Make sure you execute sound financial judgement of diversity, responsibility, and independent thinking.

* Keep learning. Don’t be afraid to read and research. Check back to this blog for more autotrading tips, too.