08 JANUARY, 2019 · Comments (0)

Automated Trading Systems

Automated Trading Systems

An automated trading system turns a defined trading process into software. That can mean a fully automated strategy, a semi-automated order tool, alerts, risk controls, or workflow automation around a manual trading process.

Start with the rules

Before development begins, define the market, timeframe, data type, entry logic, exit logic, order handling, position sizing, and risk controls. The goal is to remove ambiguity before code is written.

Test before relying on it

Backtesting, market replay, and live simulation all answer different questions. A useful system needs enough testing to expose platform behavior, edge cases, and differences between historical and real-time execution.