Re: Ask mrbaseball about trading for a living
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Thoughts on 100% automated trading systems?
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100% is no good in my mind. There are certain areas, partcularly risk override where you need human input. We have a couple blackbox guys but it's mainly for help in execution for fast moving trades. They watch and override the risk.
But computers and trading automation will only get more popular. There are stock options programs for market makers where they can set the volatilities they are willing to buy and sell and then the computer automatically makes the market for them. Their job has shifted from execution to pure risk management to make sure they don't get loaded up too much one way or another. It's fun to put in an options order a nickel better and then see all of the automated programs immediately join your new bid or offer.
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