What Is Automated Trading?


Trading has evolved extremely in the last few years. The entire procedure thought and mechanism has changed drastically. Technology has taken over everything largely. The algorithm decides where and when to invest in the market. Traders who are passionate about trading and do not want to miss a single moment are getting driven toward the automated trading system. They are reaping the rewards simultaneously for the adaptation. Brokers like ETFinace and Global TradeATF are instrumentalising it.

As a trader, trading software brings stability and balance to your life. You feel relieved as it guides you like a guardian. Through auto trading, you can keep an eye on several of the assets that you want to buy or sell. The burden is off your shoulders and the focus shifts completely to quality trading. 

What is an automated trading software system?

The automated trading system is a method of participation or investing in the financial market using a highly equipped computer-generated program that takes strides when to enter or exit from an asset. The trading system teams up a thorough technical analysis and research to land into a profitable venture. You’ll have to set parameters for your opening and exiting positions. A trader can find trailing stops and guaranteed stops. Thus, trading becomes easier than ever and lets you attend to other crucial things.

Precisely, it executes the pre-programmed instructions in a perfect way that a human is capable of pulling off in a trading market.

The best part is you save time through automated trading and you can trade in different markets and several assets in short time. Also, it helps you not to get emotional about your investments and trading. Your trading is more logical and accurate. The decision making is precise and less perilous. It is because all parameters and rules are already there. With the assistance of the algorithm,  you can apply your pre-determined strategies and draw better gains.

You can follow the trade easily by allowing yourself the service of automated trading. It makes everything simpler for traders.

Interestingly, as per reports, around seventy to eighty per cent of trades that we on stocks in the US get traded through automated trading systems.

Traders can use the software as per their suitability of convenience and put up money management, entry and exit points for precise performance. Thus, the customisable feature is wonderful for market players. They can monitor the trade and make different decisions. That is the strength of algorithmic trading.

The entry and exit prepositions may be based on several conditions. It may include a moving average crossover. Also, some complex strategies require a deep understanding of the market and computer programming language in relation to a trading platform. It can be specific to the use of a user.

How to use the automated trading software?

The trading software requires the software connected to a direct access broker. Also, for specific directions, the instructions should be given in the proprietary language.  Platforms like NinjaTrader and TradeStation are ahead advanced trading platforms used by some brokers. The former uses NinjaScript, while the latter utilises EasyLanguage.

Benefits of trading automated systems

When it comes to benefits, there is a big list of advantages that come with it. The trading opportunities, instant execution and ability to monitor the market is greater.  Brokers like ABinvesting, PrimeFin, TradedWell and Capixal lead in this technology. When you buy and sell assets, the clear advantage belongs to those who use automated systems.

Place your orders swiftly

If you are someone who wants to execute trades at a quick speed, then automated trading helps that achieve. You can become part of the coveted group. Computers have the ability to adapt to the changing financial markets and growing them further. As soon as the set criteria are met, trades happen immediately, thanks to the computer-generated system.   You can easily get out and in the trade within split seconds. Thus, profits will be significant as every mini-second counts while trading in financial markets.

Notably, once you enter the position, other orders get generated effortlessly, including profit targets and protective stop-losses. It can lead to markets moving rapidly. Also, it prevents stop-loss to be on the target before it surpasses what you can think. An automated system keeps such things in check and averts any potential perils that may occur while you prepare for trading.

Establishing discipline in manual trading

In the volatile market, establishing discipline is the toughest thing. Prices keep changing and to keep up with the pace, manual trading fails to render that. However, by using an automated trading system, management is pitch-perfect and you can trade effectively with any lag of time. And in financial trading, time is money. Emotional reasons are also there that trigger loss of funds in the market. Also, sometimes a trader may desire bigger profits out of greed. In both cases, the disciple gets broken and a timeline of emotional decision gets created.

Those thought process may be riskier for traders. Meanwhile, automatic trading helps in automated strategies that will follow what is best for a trader. Also, there cannot be any interference from the outside force or intermediary. Moreover, it works on a pilot mode, which means if the minimum amount to be inserted is USD 100, it won’t settle down for 99. So, even if you commit a mistake, the trading system will make you aware of that and you can save your grace. 

Thus, can afford to take such programming languages that land you a helping hand.

Trading speed

Irrespective of the transaction you are indulging in, the speed of the automated system is immaculate. You get an unmatched quality for forex trading, stock trading, commodity trading, cryptocurrency trading and indices trading. Thus, adaptability to changing markets becomes quite easy for all traders. The enhanced order schemes and the ability to read the situation makes the automated trading system robust for usage. Split seconds can make a massive difference during trading.

Trading plan effectively through the auto trading

When you are trading manually in the market, the biggest is to implement the plan effectively. When you miss it, there can be potential losses. Also, if there’s a streak of losses, you start doubting your ability as a trader and do not take another chance that may benefit greatly or even cover up all deficits. That’s where automated trading comes into play. It helps in the execution of plans and creating an effective trading plan for the next trading slots. It provides unimaginable consistency.

You get the courage to cover up all that you lost quickly. So, it helps in boosting the confidence of traders. So, while trading, traders can always seek help and put the act together. It can ensure that users end up making gains.

Backtesting planning of automated trading systems

If someone wants to test the viability of authenticity of something, there is no other way by analysing the past performance. An automated trading system does the same. However, one needs to be wary that while designing the system every rule must be absolute. There should not be any room for placing any interpretation. Here, one needs to guide the computer on how to react and act according to the condition. It cannot deduce results or action.

A trader can use the precise rules and regulations and apply them to historical data and past cases to determine the possibility of gains and losses. Thus, before losing your money in live trading or risking it there, this technique helps a lot. After successfully understanding it, a trader can apply it to several asset classes.  A trading idea can be fine-tuned by evaluating it carefully through a use case. Moreover, it does not come with a high risk like the live market.

Furthermore, it will assist you to consider whether you understand the mechanism of trading or not. Experienced traders with a trading account can make massive profits by finding loopholes through it. One can expect the risk and gain ratio with it.

Keep a tab on emotions with trading algorithms

Emotions can be the biggest barriers to the success of a trader. They cover the brain from functioning with its full capacity and logically. Thus, either out of excitement or sadness, a trader does something which pulls down him/her into the ground. Emotions cause directionless trading which is full of impulse and zero substance. For sticking to the plan, it is imperative to use automated trading or algorithms that can help check the trends of the market effectively without getting driven away unnecessarily.

So, traders who are feared by losses triggered by the market can learn to avoid. Also, those market players who want to recover lost funds by hedging without planning get benefitted a lot. Overtrading gets curbed and replaced by mindful trading that can roll out profits. Also, buying and selling happen only when the time is conducive.

Trading diversification without high risk of losing money

Through the automated trading system, traders can diversify their portfolios without risking their money in the market. Also, they can trade on multiple accounts with similar efficiency applying plenty of strategies at a time. It empowers a trader to hedge against losing prepositions or assets. However, there may be some risk involved but that’s worth taking. It cannot get better where a computer calculation is involved to drive the execution in micro milliseconds.

Thus, it leads to a versatile portfolio with all the best assets delivering huge profits to traders. The computer trading system is able to fetch the finest opportunity for its users and place them nicely. Moreover, monitoring trades also becomes simple.  At once, a trader can eye toward multiple trading markets.

Best trading platforms for automated trading system

If you are looking forward to downloading or purchase a trading system for the application of automated trading on your computer device, then here are a few options. However, the selection of trading platforms also depends on the preference of a trader.

MetaTrader4:- The platform gives you an opportunity to customise your bids and trades. You can apply your computerised algorithms and use them in creating indicators, placing various orders and monitoring the financial market. You can summon or invite EAs (Expert advisors) at your disposal and seek long term benefits from them. A trader can use them as per the pre-determined parameters. EAs can help you in notifying your positions or can open a position automatically in a trading financial market.

WebTrader: The platform is equipped with several artificial intelligence functionaries. You can use it any time. The bids placed can automate and buy you the asset when the price range arrives. Similarly, you can sell them at your convenience. Plus, it guides you to choose your favourite tools and execute them perfectly.

Mobile App:- It is an advanced platform that can be used by anyone and anywhere just with an internet connection. You receive Expert Advisors and follow their checks and balances. Also, automated transactions are always there for traders to use. There are 9 timeframes to one-click account switching.

Things to keep in mind before applying an automated trading system

It is advisable that a trader keeps it simple while using it for the first time. There may be some risks associated with that. Thus, learning the software or the process of algorithm is important. After knowing how it works and the whole modus operandi, it is good to apply other theatrics.

A trader can begin by copy trading, which is the best introduction stage into automated trading. In certain markets, automated trading is adjusted to excel. It is for the specific trading style. Hence, in all markets, you may not get the desired result when you buy or sell any entity.

Irrespective of your automated trading software, do not forget to form your strategies wisely. Take your time and go with the flow.


With the growing competition, automated trading systems become essential for traders to use and succeed in the financial market. A trader cannot focus on one thing alone and think of getting benefits. Thus, such automated systems help in getting the best helping hand. Brokers like ETFinance, ROinvesting, HFTrading and Global TradeATF have developed such technology and backing it for their clients.

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