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:
They are thus incapable of straying from the trading discipline set into the system
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.
They can make trading decisions 24 hours per day, seven days per week often for weeks on end.
After decisions are defined, tested and refined, subsequent decisions are made with split-second efficiency far beyond the capability of any human trader.