How to make $1,000,000 in the stock market automatically was written by Robert Lichello in 1977. It was a best seller for 1977. Many people have read this book and have been inspired by it. This book was written in response to the 1970s bear market.
Lichello developed a system that exploits the type of volatility that we see at the top and bottom of the market price action. Lichello's system was simple and mechanical which made it almost emotion free. Now any system that is rule based and mechanical in nature can be easily programmed into an automated system with today's programming languages.
So what was the system? It consisted of buying an initial position in stocks then you buy more stocks if the price goes down and you sell shares if the price goes up. A mathematical formula was also applied to the closing price at the end of each week to determine what to do with your position; buy a little, sell or hold.
Now, automated trading was a novel concept in the late part of 1970s. Do you know this fact that automated trading systems can be developed by anyone with a little bit of passion for trading and making money. The good thing about these automated trading systems is that while you can sleep, jog and do whatever you want, the trading system does not sleep and constantly monitors the market.
