CDS CDS Wiki What Is an Automated Trading System? The 5 Most Used Automated Trading Systems
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What Is an Automated Trading System? The 5 Most Used Automated Trading Systems

What Is an Automated Trading System? The 5 Most Used Automated Trading Systems

Today, cryptocurrencies, exchanges, and related transactions have a significant place in our lives. With the development of technology, people want every transaction to be faster and easier. In this direction, applications such as automated trading systems come into play. In this article, you can find out what an automated trading system is, what it does, its benefits, and what the five most used systems are.

What Is an Automated Trading System? The 5 Most Used Automated Trading Systems

First of all, let’s start with the definition of an automated trading system. This system has a program that applies predetermined rules for buying or selling. Thus, with the help of the program, you can participate in the financial markets and access detailed technical analysis, combine open orders, trailing stops, or guaranteed stops.

With the extra advantage of removing emotion from your trading decisions, automated trading allows you to execute numerous trades in a short period. This is due to the fact that the criteria you choose already include all of the industry regulations. You can also utilize your pre-determined trading techniques with some algorithms to follow trends and make the appropriate trades.

How do Automated Trading Systems Work?

Automated trading systems that are designed based on entry/exit rules set by traders use algorithmic trading. In addition, these systems may utilize some technical indicators to generate the rule set. Most of the time, trading platforms have different technical indicators that traders can select themselves and use in their trading strategies. These indicators are also referred to as wizards.

These systems also allow for more complex strategies to be used. For example, it can provide a better understanding of a platform or programming language being used. However, for these more detailed strategies, traders often have to develop their own custom trading systems.

Advantages of Automated Trading Systems

There are numerous advantages that an automated trading system provides to users.

Reducing Emotions

The system keeps emotions to a minimum while trading. Trade orders are automatically executed after the trade rules are satisfied, so traders cannot pause or second-guess the trade.


Backtesting uses previous market data and trading rules to assess an idea’s viability. With careful backtesting, traders can assess and fine-tune a trading concept and estimate the system’s expectation, or the typical amount per unit of risk that a trader can expect to gain or lose.

Accelerating Order Entry

Automated systems can generate orders as soon as trading criteria are satisfied since computers react to shifting market conditions instantly. All orders, including stop losses and profit targets for protection, are automatically produced as soon as a position is recorded. Markets can change rapidly, and it can be disheartening to see a trade hit its profit target or blast beyond a stop-loss level before the orders can be placed. This is avoided by using an automated trading system.

The 5 Most Used Automated Trading Systems

There are many platforms and software used for automated trading systems. Below you can see five of the most used ones.

MetaTrader 4

Released in 2005 by the Russian technology firm MegaQuotes, MetaTrader 4 is one of the most preferred automated trading software. A popular forex trading platform, the software is also often used by traders because it has expert advisors.


WunderBit makes it possible to benefit from the real-world use of cryptocurrencies through a variety of goods and solutions and is suitable for traders of all levels. The platform enables its users to buy cryptocurrencies securely and safely. In addition to exchange services, the platform also functions as a social trading platform. Thus, you can use one platform for everything you want to do.


One of the most significant features of Coinrule is that it offers pre-set trading strategies. This means that you can choose from many options and customize your investments with almost 150 trading templates. Moreover, you can develop your own techniques with the platform’s stop-loss setting or long-term holding strategies.


With free registration available, Pionex offers 18 advanced bots to help you create various strategies. As a giant crypto trading platform, each bot brings a different perspective to your investments. This way, you can plan for the future or make profits in a very short time.


NinjaTrader is the qualified platform for all trades when it comes to the trading world. It provides users with futures and options brokerage accounts and services because it has one of the largest automated trading software libraries in the industry.


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Lectertodd is 25 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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