Day Trading and Automation

At, we regularly receive questions about completely automated trading or “Black Box” systems. To shed a little light on these complex robotic trading systems is today’s guest, Todd Mitchell, from Trading Concepts. Be sure to comment with ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

I received an interesting e-mail today asking me about a particular futures trading system. The writer wanted to know if I knew of a futures trading system was fully mechanical and automated. I should point out that there are automated or “black box” trading systems employed by large hedge funds and other large trading groups, but I have never come across a fully automated futures trading system suitable for individual traders seeking to day trade the futures markets.

Of course, there are a slew of Forex robots on the market today, and the trading results from these robots have been mixed, at best. In my opinion, this type of question regarding futures day trading is the result of the spillover effect from the Forex trading groups. But I think that this request reflects an even deeper question being considered by new traders as they are entering the futures markets.

What sort of question do you think I am considering? Continue reading "Day Trading and Automation"

Price Action Analysis and Day Trading

Todd Mitchell of Trading Concepts is truly dedicated to trading and educating fellow traders. This is immediately apparent if you have ever spoken with him or read one of his articles.

Todd has been trading full-time since he graduated from college in 1990 and since 1994 has been sharing his powerful and successful trading strategies with traders of all levels. Today Todd is going to cover price action and its importance in trading systems and how it relates to day trading. We would love for you to leave a comment here for him here, but you can also visit Todd at


Modern day trading systems use multidisciplinary approaches to determine appropriate trading setups and to gain an overall understanding of the mood of a given days trading session. At the heart of many trading systems is price action analysis, which is interpreted in a variety of styles and approaches that best suit the particular traders methodology. Price action analysis has always been an important facet in understanding intraday trading and short-term trading trends. In some trading systems it is the primary component in determining trade selection, and in others it plays a secondary or filtering role in determining trade selection. To be sure, there are well-known trading systems that utilize only price action analysis and eschew oscillators, indicators and all the other modern day mathematically based trading tools. Continue reading "Price Action Analysis and Day Trading"