Semi-automated trading consists of 2 different segments.
First, the rule based trading engine. The trading engine works on disciplined, rule based methods. It generates trading ideas which provides a guide and helping hand by identifying short term trading opportunities.
Second, the Trader. The trader examines the existing market context. If the trading engine is suggesting a trade which matches with his context then he/she may decide to take the trade. The trader then needs to make a number of decisions - (a) context and current economic and market environment, (b) Instrument to trade - futures, options, type of options, ETF. (c) Acceptable risk. (If his context suggests that risk may be high, the trader will ignore the trading engine), (d) Volume. Because the trader uses his judgement and discretion in taking trading decisions, the trader is usually called a Discretionary Trader.
Semi-Automated trading then is the combination of rule base trading guidance and the Discretionary trader.
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