Benefits

• The most important thing about a computerized trading system is that it allows you to back-test data and see reoccurring patterns that have a statistically significant chance of happening again. For example, there is something known as the January effect in which the stock markets will make a run-up starting a couple of weeks before Christmas and into the middle of January. If you looked at the past 30 years, this pattern is 80 percent effective. By using these patterns the trader is able to gain an edge over the markets and make money. Software is infinitely more suited to looking for these types of patterns as a computer can find them much quicker than a human can and is capable of what would otherwise be mind-numbing and tedious work.
  
  

EliteTrader Forum

• A good place to start off for anyone searching for a new stock or commodity trading software is at EliteTrader.com. This is one of the most popular online forums for both professional and amateur traders alike. The site contains many reviews of popular software trading systems, and if it doesn't have a review of a product you're interested in, you can post a question to see if anybody else is using the product. The best thing about this forum is that, since there are no affiliate links allowed, you will usually get an unbiased opinion.
  
  

Trend-Trading Software

• MarketClub for SmartTraders is a simple-to-use program that is designed for what are known as trend traders. The program identifies the longer-term trend and identifies high-probability exit and entry points by utilizing arrows to signal a buy or sell. The program can make money in both bullish and bearish markets, and it is relatively accurate. The disadvantage is that it requires a large stop-loss, and markets spend a lot of time moving sideways rather than trending, which means the system has a hard time making money during these times. As of 2010 it costs $449 a year to use the program.
  
  

TradeStation

• TradeStation is both a broker and a software provider. Its program is best-suited for professional or serious-minded traders that trade on a daily basis. The program is basically a stand-alone set of tools and indicators that a trader can assemble to create her own trading system. There are also about 100 third-party tools designed to run on top of TradeStation that you can buy. Many of these tools are reviewed in the EliteTrader forum. This is one of the most popular and powerful platforms available to traders today. The problem is that for most casual traders, it will probably offer too much and can be a bit overwhelming.
  
  

Track 'n Trade

• Track 'n Trade is a well-regarded software application that is designed to work on stocks, commodities, forex and options. It uses well-known patterns such as seasonal tendencies and commitment of traders reports to create trading signals. It is an extremely simple system that doesn't require a lot of training to learn. When you get a yellow light followed by a green light, you have a buy signal. If you get a yellow light followed by a red light, that is a sell signal. There are blue lights that indicate exactly where you should put your stop-loss. In addition, there is an autopilot plug-in that will actually execute the trades for you if you don't want to sit next to your computer waiting for a signal. The only drawback is the price, which as of 2010 costs between $500 to $1500 depending on what plug-ins you get.