What is an Automated Trading System?

Do you want to learn about automated trading systems (ATS)? The automated trading system also knows mechanical trading, automatic trading, or algorithm trading – which allow traders to set particular rules for both entry and exit points.

Once automated trading is programmed it can be executed automatically through the computer without putting manual inputs.

In simple words, an Algorithmic Trading Software (ATS) is a subset of algorithm trading that uses a program of a computer to execute buy or sell orders automatically through submitting the order to an exchange or a market center.

What is Automated Trading?

In the US, 75% of trading comes from the automated trading system only. Traders or investors can precisely set entry point, exit, and money management regulation into these automated trading systems to monitor or execute the trading.

Out of many, one of the best merits of using an automated system is that it takes all of the emotion of the trading since trades are placed automatically only when one of the rules or criteria is met.

Which Factors Influence on Automated Trading System?

The entry and exit points can be relying upon very simple conditions like Moving Average Crossover or very complex strategies that may need a programmer for a detailed understanding of the programming language of the trading platform followed by the trader. It varies to the expertise level of the programmer.

These automated systems generally need software that is linked to the direct access broker.

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