The Essentials of Automated Stock Trading Softwares


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Stock trading can be quite frustrating, especially considering the extensive calculations that need to be done in order to speculate outcomes with high accuracy. Moreover, the dynamic nature of stock trading requires constant monitoring of the market so that the perfect condition for selling or buying securities. As a means to facilitate the process, automated trading systems (known as Robotic Trading Systems) were developed for providing a computer operated system that would make buying and selling decisions based on predefined trading algorithms. This has not only helped traders to minimize their stress levels, but they are provided with greater accuracy of calculated estimates due to the advanced processing power of computers.
What is Robotic Trading System?

Robotic systems in trading are automated systems wherein the trader can provide specific trading algorithms and the computer would then make buying and selling decisions based on the specified rules. The entry and exit rules for trading can either include very simple logic (for example moving average crossover) or it could involve complex trading strategies which would require thorough knowledge of the programming language used for defining the trading logic.

How Do They Work?

Robotic Trading Systems work completely on the basis of codes that have been programed into the processing system. These codes contain explicit trading rules that function on the basis of complex calculation and speculation algorithms. Only when the market conditions and the trading scenario complies with the rules that have been defined by the trader, does the system place an order with the stock broker for buying or selling specific stocks.

What Trading Software Are Compatible with Robotic Trading Systems?

There are different trading software which offer specific actions such as placing order, identifying profitable trading opportunities, etc. such software fall under 2 major categories – fully automatic and semi-automatic. The semi-automated version performs all the calculations but require the order to be placed manually. Fully automated versions, however, are capable of placing orders with the broker as soon as favorable conditions are met.
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