Automated Trading Systems: Pros, Cons, and
It's early morning. Your algorithm just captured a move on ES futures while you were still asleep. You check your phone to see a notification: +$1,250 p...
automated trading systems is an essential topic for every trader looking to improve their futures trading. It's early morning. Your algorithm just captured a move on ES futures while you were still asleep. You check your phone to see a notification: +$1,250 profit. This is the promise of algorithmic trading—execution without human intervention, precision without emotion. But is this reality or just another trading myth? This article covers automated trading systems in detail for traders looking to improve their results. Automated Trading System is a computer program that creates and submits buy/sell orders based on predefined rules. It's a subset of algorithmic trading that operates at high speed and frequency. These systems are often used to implement strategies that analyze market conditions, price moves, and other financial data to execute trades at optimal times. Key fact: By 2009, upward of 60% of all trades in the U.S. were executed by computers according to Investopedia. Key fact: An estimated 70% to 80% of all market transactions are carried out through automated trading software, in contrast to manual trades according to Wikipedia.