The future of automated trading - page 25

[Vasiliy Sokolov]

Фундамент уже давно есть, и будущее про которое мы тут говорим уже наступило http://www.kroufr.ru/forum/index.php/topic,11085.0.html

I've read it, it's nothing special. I've been hearing about automatic trading taking over everything and tearing up the poor unhappy market for a long time. It was written about back in 1989(!). The author of the article thinks that robots made the volatility skyrocket and the market become too unpredictable. Journalists often put the cart before the horse. Robots do provide liquidity and they make the market more efficient within a minute bar. That's a good thing. Robots can never cause any fundamental changes and distortions in the economy, they have a purely useful function. You could compare robots to beneficial bacteria that compete with each other by digesting carbohydrates (liquidity), synthesising vitamins and displacing pathogenic microbes (competition).

[Prival]

joo:

The highlighted one is the key one.

And I have seen it. I've even seen graphs of average execution times over time. The same broker has detailed statistics of spread changes during the day (even this information is covered). They have MT.

i am sending you the info in my personal message. please send me the same. i would love to see something like this...

[Andrey Dik]

Prival:
I'm sending you the information in my personal. Please send me the same. I would love to see something like this...

I sent it to you in a private message.

PS The forum engine amazes me. See how the link was automatically put on the words "Sent to you in a personal box".

[[Deleted]]

pronych:
This is nonsense. What serious investment fund would leave its work to any, even a super-duper cool robot. I suppose there are always people behind the robots, and tearing the hairs on the top of their head (if there are any left:))

mrProF:

A properly designed and written robot will be more reliable than a human. :)

P.S. 666 reputation I have))

Robots can, and do, get left to work. Of course, no one would even think of leaving them unattended.

Here we have to keep in mind the following point

Any investment fund has a much larger capital than a private investor and the list of securities that are constantly being traded certainly exceeds 100 (or maybe even 200).

"No robot is "more reliable" than a professional trader yet, unfortunately. But many can make money under human control...

[[Deleted]]

mrProF:

For example on R2, as far as I know, the operator manually confirms deals and gives the price, you can even wait a couple of minutes)).

On R2, the scheme is much WISTERN, as far as I remember. The demo accounts there are 95% managed by the machine (which also has a Cunning algorithm). The real accounts there are managed by the machine for small volumes, but large trades are managed by people.

In this case, the machine adapts its decisions to the actions of the MANAGER.

PS

But what is a BIG volume I couldn't understand...

But I'm sure the "LUCKY" accounts are all under control there.

[Nikolai Karetnikov]

timbo:

Even for MT4 there is an advisor that reads the news. And if you invest a few million greenbacks in this issue...

========================================================

ERNEST P. CHAN "Quantitative Trading".

Yet quantitative trading includes more than just technical analysis.

Many quantitative trading systems incorporate fundamental

data in their inputs: numbers such as revenue, cash flow, debt-toequity

ratio, and others. After all, fundamental data are nothing but

numbers, and computers can certainly crunch any numbers that are

fed into them! When it comes to judging the current financial performance

of a company compared to its peers or compared to its

historical performance, the computer is often just as good as human

financial analysts-and the computer can watch thousands of

such companies all at once. Some advanced quantitative systems

can even incorporate news events as inputs: Nowadays, it is possible

to use a computer to parse and understand the news report.

(After all, I used to be a researcher in this very field at IBM, working

on computer systems that can understand approximately what a

document is about.)

That's right. Loans in banks are already given by programs. Football balls, tennis scores are scored by programs, weather forecasts are calculated by computers and that is probably the biggest breakthrough, because we are already talking about predicting the future. In the future, it seems that computers will even judge civil cases (where fines are involved, the equivalent of credit). In principle this already happens now, for example there are lane cameras on the roads. It is hard to imagine what it would cost. Computers that have all the information known at the time will be able to guess what is already priced in and what other computer programs will know and make a move. The current generation of traders will probably be the last generation of traders at all.

[Nikolai Karetnikov]

joo:

It seems everyone has forgotten that it is possible to write your own functionality for the terminal in the terminal's native language, including the strategy tester, which allows to test on any data, including "purchased" ticks. And in general, everything that the terminal lacks, everything can be implemented by means of MQL5. In some time such solutions will surely appear in abundance, to fill the niche of custom testers that is still empty.

But I believe the future of automated trading consists not in terminal-type program solutions, but in such special programming languages. All I need is a language and an executable environment for it, and then we will be able to realize everything we need.

That is why I admit the possibility ofsuch specialized programming languages as for engineers, medics, etc.

Yes, it is very likely that this is how it will be. Specialised programmes for different professions, learning them in school, taking exams in programmes, specialised languages

[Igor Chemodanov]

ns_k:
yes, that's very much what it would be like. Specialised programmes for different professions, learning them in school, taking exams in programmes, specialised languages

It's been done before... Does anyone remember languages focused on programming expert(!) systems, LISP and ADA?

[Nikolai Karetnikov]

icas:

It's been done before... Does anyone remember languages focused on programming expert systems, LISP and ADA?

May be I was speaking too much about school :), but recently I was in a doctor's clinic and saw a middle-aged woman trying to figure out how to input her cold treatment recommendations into the computer. Instead of illegible handwriting in a thick book, they now enter the data into the computer. And it's all over the place. In VTB24, last Saturday, the internal banking software did not work and they could not do anything at all, it was impossible to accept or withdraw money, neither through a teller, nor through an ATM.

[Женя]

ns_k:
The current generation of traders may be the last generation of traders at all.

What about ALGO traders? Bots need to be written by someone, and bots can't come up with strategies for them either.

I agree that manual trading will die out because it is not competitive with bots. This situation is in general widespread now, take for example digital graphics, no manual single frame painting cannot be compared with high-level graphic CAD systems using operator. The same will be true for trading.

Put the whole routine on the machine!

But still, the super high-level and heuristic functions can only be done by a human being for now. This is great that trading is becoming a creative business, not a routine one based on discipline and performance, now everything depends on ingenuity, and let the bots do all the work.