Robots are killing off Wall Street’s traders

Robots are killing off Wall Street’s traders

Computers have taken over the majority of trading on Wall Street and are threatening the very nature of the trading profession. Laura French asks whether traditional traders are fighting a losing battle.

Throughout most of the 20th century, robot traders would have been a mere figment of the (sci-fi film-influenced) imagination. But now they’re used by over 80 percent of trade markets, including the majority of investment banks and other big institutions, with retail trading remaining one of the only sectors still reliant on human brains. In short, the conventional trader depicted in clichéd Hollywood movies has almost completely died out, and with it the elements of risk-taking and intuition that defined the industry for hundreds of years.

Attempts at automated trading aren’t new – the Black-Scholes formula, taken up by traders when it was revealed in 1973, is proof enough that traders have long been trying to predict share prices in the most accurate and profit-reaping way possible. But computerised traders have taken it to the next level.

With these robot traders you’d expect the element of corrupt trades and dodgy dealings to disappear, but a lack of transparency continues to plague the high-frequency trading (HFT) industry, and the speed at which computers operate makes tracking individual trades nigh-on impossible without an audit trail.

Rise of the machines
Eric Hunsader from US data firm Nanex believes robot traders fiddle the market, ordering then cancelling trades just before the critical buying moment. “If the regulator fully […]

What are the benefits of using a VPS server for robot trading?

Trading is a business that takes much time, study and a great control of your emotions. All this can be ruled out with the use of an automatic trading system. But what exactly is a software for automatic trading?

Well, an automated trading software is nothing other than an application by which people can invest in financial markets with simplicity and without any engagement. The opening, management and closing of the operation are fully managed automatically. The investor, with this tool, can completely exclude the emotional factor, and the time required to observe the markets.

An automated trading system has huge advantages, but requires some precautions, such as finding ways to operate the software without any interruptions that may result in a loss of money. The solution can be the Forex VPS (Virtual Private Server), a virtual PC positioned within a company’s server, that can safely and perfectly operate 24/24, 365 days a year.

Especially your PC is not set for the trading like a Forex VPS, with a 250mbs connection, autologin in case of reboots – feature that allows you to automatically open the MetaTrader 4 with your Expert Advisor – and the ability to access it from any device, even when you’re out.

Thanks to a VPS server, the automated trading system can operate continuously without any physical presence and with the ability to turn off your PC or use it to handle other tasks.

What are the benefits of using a VPS server […]

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The pros and cons of automated and manual trading



The technology of trading currencies has come a long way since the necessity of physically buying foreign currencies from your banker. The introduction of Forwards, Futures, Options, and various other derivatives have enabled investors to capture the opportunities in appreciating and depreciation currencies in a far more powerful way.

The introduction of internet technology has further increased the accessibility of currency trading to the masses with countless web platforms and virtual services. These countless forex trading mediums can be polarized into two main spectrums: Manual Trading and Automated Trading. Of course there is room in between these two spectrums for hybrid models which facilitates various degrees or elements of each methodology – Trade Genius Group for example is one of a few rising platforms that has made it to create a hybrid solution, is that your best choice as an investor? Let’s have a look at the different option.

The World is Flat

Perhaps the most phenomenal influence the internet has had on currency trading is the availability and rapidity of information affecting prices around the world. This has equipped traders around the world with live-time tools for technical and fundamental analysis. The instantaneity of influential information has caused the market to shift closer to strong efficiency from semi-strong efficiency. This has changed the so-called “rules” of price movement and analysis of prices.

How Profit is Achieved When Everyone has Relevant Information

In 2014, it is reasonable to say that prices reflect past historical as well as immediate information. Therefore price […]