Originally posted by dottom
I suppose you've never even seen Oracle Financials? You enter the data and it does the accounting. In many cases it grabs the data direct from other electronic systems. But that's besides the point. Your argument doesn't make any sense.
An account + Quicken ==> produces accounting paperwork.
Trader + software that produces an edge ==> profits.
And if you're arguing against 100% fully automated trading (vs. a system that produces signals and a user does the order entry), you might want to hop on one of the automated trading systems (ATS) forums out there. Also, you may want to do some research on the 100% automated arb programs out there that do millions of dollars of transactions every day arb'ing out small inefficiencies in the market.
I think there are distinctions that need to be made here. There are certain tasks within accounting that are indeed better suited for computers to do. And there are several programs that do just these tasks. But I'm talking about the most complex aspects of accounting that still necessitate a human accountant (not just data entry). admittedly, I don't know much about accounting. However, I do know that if it were possible to get rid of human accountants and replace them with computers, corporations would do it, it's simple cost cutting. Yet they haven't done this, and human accountants still exist and are paid very well. Therefore, there must be some aspects of accounting that cannot be done by computers.
I'm guessing that it is the same with trading. Certain styles of trading are more suited for computerization e.g. arbitrage. And certain aspects of any trading style would probably be better suited for computerization e.g. anything involving heavy math. But there maybe be trading styles out there that are not best suited for computers, just like in accounting there are still some tasks that need to be done by humans. I guess it all depends on trading style. But that's my point, to say that all trading is best computerized and backtested is suspect. Maybe there are some trading styles that aren't suited toward computerization.
