Some institutional investors use these algo trading software even for stock trading, but defiantly algo trading is not allowed in CSE. I think some well know company tried to build one for CSE but they didn't get the approval.
But anyway it's not a good idea to let a software manage your protfolio.
No, there are no Robots, but high speed trading systems are there.
These systems can execute couple of hundred buy/sell orders per second, and it is perfectly legal.
What did you mean "they didn't get approval", by whom? I hardly think so.
Usually these systems have,
0. Data fetching (through TWS)
1. Market scanning component
2. ANN for partial decision making
3. Signal generator for final buy/sell decision
4. Order execution (through TWS)
The main advantage of high speed trading is,
rather than executing 1~5 trades having Rs.1000~2000 profits per day (manually),
a properly implemented system can carry out (eg.) 1000 trades with Rs.100 profit.
Standard(almost) API reference : http://www.interactivebrokers.com/php/apiUsersGuide/apiguide.htm#apiguide/apicover/apicover.htm
Some ANN trials : http://forum.srilankaequity.com/t4604-neural-network-approach-for-market-prediction-outputs
Suspicion about automated trading is very understandable.
It is the human nature that we suspect what we don't know or out side our scope.
I would be happy to do trading through a automated system.