Systems Trading

WHAT IS A TRADING SYSTEM?

Trading systems are software programs that issue buy and sell signals based on price, volume or other empirical data. By analyzing real-time price data and comparing it to pre-set pattern recognition inputs, or by running the data through algorithms generally compiled by the system provider, trading signals generated and run through an auto-execute applet to affect the trades indicated.

BENEFITS OF A TRADING SYSTEM?

Because a trading system isn’t subject to distraction or fatigue or hesitation, it can offer a more disciplined approach to trading volatile markets while also possessing several key advantages:

  • Discipline

    They are thus incapable of straying from the trading discipline set into the system

  • Focus

    They are notably less liable to err due to human emotion and don’t second guess pre-set parameters, hesitate to execute trades, or miss signals due to distraction.

  • Consistency

    They can make trading decisions 24 hours per day, seven days per week often for weeks on end.

  • Efficiency

    After decisions are defined, tested and refined, subsequent decisions are made with split-second efficiency far beyond the capability of any human trader.

Interested in Systems Trading?

Contact Dorman Trading

Learn more by exploring the systems trading providers affiliated with Dorman Trading: