Stock trading systems community Collective2 is bringing automated trading systems to the retail brokerage customer. Joe Shmoe can now have access to a trading system developed and practiced by an experienced broker, mad technical analyst, or possibly even a computer algorithm. The Collective2 API will make it possible for quant systems all over the internet to trigger trading in unknown numbers of retail customer accounts. Dangerous? Frightening? Futuristic? Yes, Indeed.
At first blush, the real core of the company's API consists of trading ‘signals’ which are created when a system enters a trade. For example, take the Superior Returns trading system, which is up by a annualized rate of 305% at the time of this writing. Anytime the creator of this system registers a trade, everyone that subscribes to the model will receive a trading signal. If they chose to go all the way, this signal will cause a trade to be entered into their account automatically. This auto-trading is possible because C2, as it's called, has interfaced with a collection of retail brokers. The tools needed to develop a C2 interface to another broker are included on the developer page as well.
This RESTful API service returns XML responses. It’s one of just 6 stock and finance APIs. The only other API we’ve documented that triggers real-time trading of financial instruments is TradeKing. Has the trend started?