Auto Trading

In this article, we want to learn the definition of “Auto Trading” and the usage of it.

what is Auto trading?

Autotrading is a trading plan that is based on buy and sell orders which are placed automatically on a programmed strategy.

Auto Trading allows rapid execution of orders, as soon as programmed strategy conditions have done.

Traders can program the trading software, or connect a program to the trading software, to make automated trades based on a customized trading strategy.



all types of retail investors can utilize Basic forms of auto trading. For example, setting orders that will execute in the future.

On a more advanced level, auto trading can potentially eliminate human input entirely.

Overall, traders can use this system in a wide range of markets including stocks, cryptocurrencies, etc.

Technical day traders will use auto trading to invest based on technical market signals. They commonly use complex conditional orders for auto trading. These types of orders allow an investor to specify an entry price and build a collar around the trade to institute pre-determined profit and loss levels for risk management. Autotrading programs can be built to capitalize on trends that develop, trade gaps, trade ranges, or scalp the bid/ask spread

Example Criteria to Consider For an Autotrading Strategy

Autotrading may sound simple, but programming even a simple trading strategy requires a lot of thought. Rules need to be simple and codable, and can’t include subjectivity, because the computer needs to define them.

Things to consider include:

  • Position size, and how it will be defined.
  • How trades will be entered, and what specific parameters will trigger a trade.
  • How trades will be closed, and what triggers the closing of a trade.


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