Automated Trading
Automated trading is a methodology that uses computer algorithms to execute trades in financial markets automatically, based on predefined rules and strategies. It eliminates human intervention in the trading process, enabling high-speed execution, backtesting of strategies, and systematic risk management. This approach is widely used in stocks, forex, cryptocurrencies, and derivatives markets.
Developers should learn automated trading to build algorithmic trading systems for hedge funds, proprietary trading firms, or personal investment strategies, especially in high-frequency trading where speed and precision are critical. It's essential for creating quantitative models, implementing statistical arbitrage, and managing large portfolios efficiently, reducing emotional biases and operational errors.