One of the hottest day trading systems on the market is Day Trading Robot, a neural net style market analysis program that, according to the people selling it, has over a half century of day trading experience coded into it from the get go. It is a proprietary (closed source) system, meaning that you can’t actually look at the source code and analyze how it’s making its trades.
What causes the buzz about the Day Trading Robot System is that the computer software theoretically learns from its trades; this is something that is possible with self modifying expert system software, though up until now, it’s been unlikely to be put into a day trading context, just because a typical computer can’t handle the enormous resources needed to read the entire market.
What it does offer is black box analysis. This is nothing new; there have been stock trading analysis sheets going back to the 19th century, with the method of their delivery improving with the times, from ticker tape messengers to telephone calls with quiet tips, to faxes, to email newsletters, even to RSS feeds and constantly updated web sites. For that matter, stock market analysis has been part of the broadcasting experience since the 1930s.
We aren’t certain if Trading Robot is merely a slick analytical engine, or if it really does learn from its mistakes; that being said, it’s a good advisor and automated trading program that will do the most important thing possible for your day trading career: Make money. You see, what this Trading Robot really does is free up your time to make the strategic decisions about how you want to invest; you no longer have to fight the phone lines to place your put and sell orders. It can reliably gather a lot of important information, plot it onto graphs and make recommendations based on those graphs and its internal algorithms.
Sometimes, you’ll agree with the graphs, sometimes you’ll see something that will make you look more deeply into the data, and because of this Trading Robot System, you’ll actually have the time to exercise reasonable judgment as you manage your stock picks and run things out.
All that said, stock trading in any context, involves making decisions. You will be making decisions on incomplete information, no matter what the Day Trading Robot System gives you. Some of those decisions will cost you money, and you will have to treat day trading as a job if you want to make money.
There are marketers out there who are trying to cash in on affiliate sales of this Trading Robot who don’t understand the first thing about stock trading or making volatility plays on the market, who are positioning it as a completely automated wealth machine. Nothing could be farther from the truth.
Day Trading Robot or no, letting a computer program run your financial business is a sure way to lose money. You need to keep an eye on things and treat this as your job.