Any good introductory books about automated trading system?

[Matt Psyche]

Any good introductory books about automated trading system?

[davie08]

stay away from automated trading it doesnt work I've gone down that path let me guess your under 20 and your looking for a get rich quick idea. Life doesn't work that way read books on the basics of technical analysis and give market wizards (http://www.amazon.com/gp/product/1592802974/ref=as_li_tf_tl?ie=UTF8&tag=fiasco-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1592802974) a look but dont try automated trading.

[doublereed]

Any good introductory books about automated trading system?


Yes there are very successfull algo traders and trading systems out there but good luck finding any information on them. All algo trading systems are man made so they do have their flaws.

The good thing about algo trading is they have no discression and therefore no emotion to get in the way... The bad thing about algo trading is they have no discression and therefore no intuition... It's a double edged sword. I don't know of any books about it. I'm sure it wouldn't be considered a "good" book though because it would be all mathematical formulas.

"A third of all EU and US stock trades in 2006 were driven by automatic programs, or algorithms, according to Boston-based financial services industry research and consulting firm Aite Group.[3] (http://www.onlinetradersforum.com/#cite_note-2) As of 2009, high frequency trading (http://www.onlinetradersforum.com/wiki/High_frequency_trading) firms account for 73% of all US equity trading volume.[4]" - http://en.wikipedia.org/wiki/Algo_trading

Some softwares like vectorvest, and investools have indicators of when to buy and sell. These are based on algorithms that they have set in their software: It's the same concept. I'm sure some of these firms have a juiced up version that fires off trades for them automatically. So... yes they are out there, but it's not readily available to the public that I know of. I know Think Or Swim has it so you can set up algorithms to trade automatically and then back test your strategies to find out if it would have been successful and to what extent, but it's still all plugged in manually.

[shulink]

Try High-Frequency Trading (http://www.amazon.com/gp/product/0470563761/ref=as_li_tf_tl?ie=UTF8&tag=fiasco-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0470563761) and Mechanical Trading Systems (http://www.amazon.com/gp/product/0471654353/ref=as_li_tf_tl?ie=UTF8&tag=fiasco-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0471654353).