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Sunday, 02/19/2006 5:32:46 PM

Sunday, February 19, 2006 5:32:46 PM

Post# of 51804
Program Trading

I'm defining program trading as an automated set of rules to enter and exit speculative markets. Prechter argues the set of rules for entering and exiting speculative markets are based in collective human emotions written into the software. TAP tries to take out the human factor by basing trade criteria on technical analysis. Program trades make up about 75% of the volume. When a crash happens, program trading will be blamed since it dominates the trade volume.

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