stock people: what kind of scam is this?
- Thread starter gabe
- Start date
Whats the scam? Automatic trading is illegal. You can have computer added stop-losses, but the actual trade has to be initiated by a human.
All that software probably does is place a bid at a certain price, with a marginal stop-loss in place. Hopefully, you profit from the position.
Computers would be no better than humans in predicting human behavior in trading.
All that software probably does is place a bid at a certain price, with a marginal stop-loss in place. Hopefully, you profit from the position.
Computers would be no better than humans in predicting human behavior in trading.
Bastard, you beat me to it.
rainbowsky
Veteran XV
automatic trading is illegal?
and computers are good at identifying and performing different types of arbitrage...
Was when I traded a few years back at least, don't know the current scenario. If you were caught placing automated bids or trading at the market using a "bot", you have the potential to lose your seat.
Only automated anything is what I mentioned above, a placed bid at a specific price that waited for the trade to get filled. The software did not predict if it was good or not, just left it unless you deleted it.
Only automated anything is what I mentioned above, a placed bid at a specific price that waited for the trade to get filled. The software did not predict if it was good or not, just left it unless you deleted it.
Just looks like software from a poorly run website. I can't figure out much about the actual product.
ceand- Not sure what you mean by "automatic" trading, but I think alot of trading would fall under this category. Iinsitutional buy and sell programs, VWAP orders, go along orders, and all the different "black box" systems used.
I'm not up to date on all the futures rules, but I can't imagine it would be illegal to develop your own software that can send orders out if a certain condition or price is met. They used to have software (and I'm sure it's still used) that would arb the options prices on different exchanges whenever a market crossed.
SBJ, 
, SP500 futures explicitly stated that all orders had to be either resting or hand entered. Also illegal to trade with yourself, but I would guess most already know that.
Most, if not all, of the trading in Chicago takes places on XTrader, from TT. AFAIK, no firms or institutions used any software from any other developer. This was strictly futures markets. So, by way of DUH!, any alteration of that software to trade automatically was illegal.
I should clarify that there are a TON of charting programs out there, so by no means was XTrader the only software in use. It was just for the entering of trades on the screen. The bonds guys used proprietary software from Cannor(sp?).
Miss that job!
, SP500 futures explicitly stated that all orders had to be either resting or hand entered. Also illegal to trade with yourself, but I would guess most already know that. Most, if not all, of the trading in Chicago takes places on XTrader, from TT. AFAIK, no firms or institutions used any software from any other developer. This was strictly futures markets. So, by way of DUH!, any alteration of that software to trade automatically was illegal.
I should clarify that there are a TON of charting programs out there, so by no means was XTrader the only software in use. It was just for the entering of trades on the screen. The bonds guys used proprietary software from Cannor(sp?).
Miss that job!
It's software that's supposed to give you a buy or sell signal before a news release. It's a scam though, an intelligent trader stays out of the market during a news release. If you bet wrong, a spike like the one that's advertised will ignore your stop and wipe out a couple of months in profits.
That's probably closer to the truth than what you claimed before.
Automatic Jack
Veteran X
Cramer says he lost half a million in 15 minutes on forex.
People on this forum talk about stocks, and they never discuss computer programs to help you trade.
http://www.cramersmadmoney.com/forumdisplay.php?f=25
That should tell you something right there.
The market doesn't care where it was yesterday, it doesn't remember. Computers don't know about company management and whether they are good. They don't know if the CEO just got canned, or if there is a stock options back dating scandal, or if the company just stopped working on a drug like PFE.
Stock screeners on web sites can give you a list of stocks to pick from, but you still have to do the homework. There is no free lunch.
http://www.cramersmadmoney.com/forumdisplay.php?f=25
That should tell you something right there.
The market doesn't care where it was yesterday, it doesn't remember. Computers don't know about company management and whether they are good. They don't know if the CEO just got canned, or if there is a stock options back dating scandal, or if the company just stopped working on a drug like PFE.
Stock screeners on web sites can give you a list of stocks to pick from, but you still have to do the homework. There is no free lunch.
yeah a stockbroker on the internet is unheard of and its such a hard job to get huh