Swing trading in the sense of surfing the waves with a time frame of days or weeks is most suitable for autotrading. There is no fundamental information necessary. It is all technical and that’s the reason why it could be done completely by a swing trading algorithm in a software system. The trader should still choose the right stocks or commodities to trade and update the selection from time to time, but the main part of the trading equation is the timing then.
For trend trading it pays off to keep an eye on the fundamentals or the bigger picture of products or the economy. For investing this would be wise anyway. Day trading is a different beast as there are many different methods to do it. But, if the day trading method is riding the intraday swings, the trader’s job is automatable.
Swing trading with holding periods of days can use daily bars as the main data source to track the trading target. Elegantly we are now on our way to deduce the simplest swing trading algorithm possible. Just
enter the market on the first break of yesterday’s high after a downmove of the daily highs and then
exit it on the first break of yesterday’s low after an upmove of the daily lows.
If done symmetrically with having long and short positions, just switch the position from long to short or vice versa instead of entering and exiting it.
This simple swing trading system doesn’t work always. You have to select swingy stocks. Commodities are also okay and at times even a currency pair will do it. Generally growth stocks or stocks in a large trend produce the best swings.
Stocks that are mature and are seen by the market more as a fixed investment that compares to bonds are often in a mode that produces fewer trends than pure random would generate. These stocks are mainly sold by simple valuation models depending on dividends and the like. Value investing dominates their trading and thus anticyclical pricing dynamics have taken over.
The swing trader’s job is part of what trend traders do. You have to keep the selection of dynamic swingers fresh. If you succeed on that, even this simplistic swing trading method above will make you money. One could do it of course with a more sophisticated swing trading software that adapts better to the pricing idiosyncrasies of a stock. In any case, auto-swing-trading seems to be something for the beach trader.