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Understanding CAT Principles on which Computer-assisted Trading is based

Principles 1  Short-term price movements are entirely random 2  newTRADE 3  multipleCHOICE 4  smartLIMIT Who will use CAT 1  General 2  Brokerage firms/ Service providers 3  Account Executives/ Portfolio Managers 4  Retail Investors/ Active Traders 5  Asset and Fund Managers Computer simulation Psychological factor FAQ       Set up demonstration account today and test the system.       4. smartLIMIT smartLIMIT allows the investor to trade securities depending on whether they out- or underperform a market index. smartLIMITcontinuously compares bid (or ask) quotes of a stock to a chosen index. The user is informed when the stock either out- or underperforms the index by the specified amount (%). Traditional Client enters limit order Order is executed when limit is reached. Problem: Execution is mostly dependent on market swings. Computer-assisted Client enters order to buy when stock underperforms a market index by ..% Order continuously compared to the market index User is informed when stock has underperformed market by ..% How it works: smartLIMIT is simple to use NOTE  It also helps avoid a traditional disadvantage of the limit order -  buying into a falling market or selling into a rising one.

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