“It depends on what the client’s needs are… the more time people have with a tool, the more comfortable they are with it and the more they are able to manage, the more profitable it is for them,” said Richard Kelleher, chief investment officer at CAA Portfolio Management.
For example, if a trader is trading a fixed-income index portfolio that needs about a month to complete the trades, that client can use it over 30 days. “If a trader is trading a mutual fund portfolio that needs to be completed in an hour, the trader could take a 30-day window,” said Mr. Kelleher.
But a client looking for short-term trading may benefit from an automated option trader.
“Traders who make the most money tend to do a lot of trading on the short term. So you can get them to take a 30-day window,” said Mr. Kelleher. “The good trader has enough time to do their homework, make sure the algorithm is accurate and to do some advanced research if something happens or unexpected.”
When should an automated trader be avoided?
“Traders that are too automated are not good and they come with a lot of risk,” said Mr. Kelleher. “Any trade that is too automated has a lot of risk, from the trader’s perspective.”
But for a long-term strategy trader, an automated trading platform can be advantageous. This trading firm charges higher fees and does not track trades, according to Mr. Kelleher.
“You will often see a lot of traders that are more conservative than those that are automated,” Mr. Kelleher said. “That takes time and they are not good performers because you go with the cheapest one. They have their own interests at heart.”
If you are using CACO’s automated option trading platform, how do I find out if it is accurate?
“We ask people if they have a question about a trade,” said Chris Van De Veer, the vice president and head of strategy and general counsel at CACO. “At this time, our system doesn’t track any of the trades. We are working on it and we’re always working on things like that.
For example, if a trader is getting their information from a website, “it’s easy to get that information; however, you’d have to look at how much information an option seller puts in a trade,” Mr.
what is swing trading stocks, swing trading strategy forex, swing trading for dummies by omar bassal cfa institute, swing trading for dummies by omar bassal cfa exam, free swing trading software