Automated trading software is a platform that uses algorithms to monitor trade markets. It allows traders to participate in financial markets and to enter and exit the trading markets. For example – a stock market trader using automated trading software can set initial guidelines before entering the market. After this process, the automated trading software can screen the stocks that fit according to the protocol.
In today’s time, automated trading software is used for entering a variety of markets, including shares and forex. Anyone who has a computer and a good internet connection can start using automated trading software to enter markets of their choice.
Even if you have little knowledge about trades, this trading software helps you out to give you a start in entering markets.
How does it Work?
The way automated trading software works is by running through advanced mathematical models to make trading decisions. A trader sets some parameters, then applies some rules and conditions to follow, and then, at last, the trades get placed.
When you have chosen software and set the guidelines for trading, the software will start trading based on those established guidelines. The algorithm runs on your computer system, and; trades are placed in markets on your behalf by the automated trading software. Depending on the timing of the trades, the pricing, and when the market opens/closes, trades get placed.
Don’t Miss: 8 Things You Should Know Before You Become A Day Trader
These types of software aim to work faster, execute the trades more efficiently, and take advantage of markets.
For determining shares worth trading, multiple factors are taken into consideration. The software analyzes news, social media buzz, technical difficulties and checks liquidity and volatility before trading.
Best Automated Trading Software To Use
MetaTrader4
Metatrader4, also known as MT4, is one of the most popular trading software platforms out there. MT4 was released in 2005 by MetaQuotes Software, and it quickly became a successful tool for market trading. The platform is used for forex trading, technical analysis, and analyzing financial markets. MT4 is available on Androids and iOS systems; using the app, one can create a free demo account to practice trading in a real market environment.
MetaTrader5
MetaTrader5 is an upgrade of MetaTrader4. MT5 provides more market access, a simple coding language and improves backtesting abilities.
BuySide Global
The purpose of this software serves to provide traders with an unlimited time frame selection, scanning tools to identify securities that match your guidelines, 100+ technical indicators and other technical analysis capabilities.
With many options available out there to choose from, you need to opt for the one trading software that gives the most advantages to you. Without complete information available to the software, you can end up buying excess shares or losing the ones you had. It is easy to understand how trading software operates. Provision of internet connection and a set of rules is needed for the software to run the algorithm and start trading. By looking at various factors that affect the investment in shares, the software functions to enter into trades based on your needs.