What is Automated Screen Trading (AST) ?

In an automated trading system, the traders establish specific rules for both entries and exits that can be automatically executed via a computer once they are programmed. The rules for trade entry and exit can be based on simple conditions such as moving average crossover. However, the rules based on complicated strategies require a comprehensive understanding of the programming language specific to the user’s trading platform or even the expertise of a qualified programmer.  Such trading systems require the use of software which is linked to a direct access broker. The specific rules are then written in the platform’s proprietary language. For example, the TradeStation platform uses the EasyLanguage programming language and the NinjaTrade platform utilizes the NinjaScript programming language. One of the main advantages of automated screen trading is that it minimizes emotions throughout the trading process. As the trade execution is performed automatically and trade rules are established, discipline is maintained in even the most volatile markets.

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Edited and Updated 31st May 2014

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