Automated Trading vs. Live Trading

There is a championship going on currently in which automated training is being introduced to the market. Here is the link:

Winners of the Automated Trading Championship 2006 - Automated Trading Championship 2006

Now I have thought of this even before I saw it here, and I thought, well if these are all systems like the one on the “cowabunga system” then why cant a computer just make the trades based on the “rules”?

Well I guess a computer can. So I have the following Questions:

How will this affect Forex trading?

What are the adv/dis of Automated vs. Live trading systems?

Can a human actually make beter technical analysis decisions then a computer?

Is the only reason we dont fully automate is because of the fundamental analysis?

Thanks all for your input on this matter.

Sincerely,
Mike Lewthwaite

P.S. And wouldnt the great TA traders feel bad that they were being replaced by the computer?

Can some of the “pros” fill in on this? :stuck_out_tongue: I think it was a very interesting question, since me and a friend of mine are building a automated system as we speak.

Love, kingen.

The advantage of an automated system is that it has no emotion. It will take a trade based on a precise criteria which eliminates human reactions to emotions. Human emotions if not controlled can be very lethal to your trading account. Automated systems are good but should always be observed and tweaked if necessary to keep up with the changes in the markets. I would say that humans make better technical analysis simply because it takes a human to program an automated system to react to certain conditions

[B]PipVentures[/B], as long as it’s technical analysis, the result should be the same than with LIVE manual trading but the probem is during the whipshaw periods, human beings (based on their experience) can use their own discretion… but NOT the machine!