Automated Trading Systems (ATS) are programs or scripts that work off of a set of instructions which advise opening or closing trading positions based on the results of pre-determined technical analysis and data sets. A trading system (sometimes called a "Black Box") allows to exclude randomness in the trading process. Strict adherence to the system permits to rule out the emotional factor in trading the financial markets.
Automated trading systems are created by converting your 'system' into code, which the Executing Application places through a clearing agent or broker, who is also called a "Market Maker" or FCM (Futures Commission Merchant). The application must also be able to manage to close positions upon profit or loss of the account, as per its programmed preset.
Is a software platform designed for trading over the global financial markets. Many institutions that offer Retail FOREX trading, use MetaTrader as their default software platform for their retail customer base. MT is now becoming the default platform for any new FOREX Dealer Member to offer its client.
eSignal by Interactive Data Corporation
A leading provider of affordable, reliable, real-time financial market information and professional-level tools, delivered to PCs, laptops, PDAs and smart phones.
IB Tradestation by Interactive Brokers
Is an ElectonicCommunication Network for Forex, Stocks, Bonds, Options and Futures.
The Apex of an automatic trading system is to determine the exit point.
Any system must provide not only the signal to open a position, but estimated levels of profit and loss as well. It is also necessary to identify the level of stop loss for the case when the market starts to move in an opposite direction. In other words, the ATS must define exactly, up till which level the position should be held open in order to receive maximal profit, and define mechanisms for loss stopping in case of an unfavorable development of the market.
