Wikipedia describes a Trading System as "A trading system is a group of specific rules, or parameters, used by traders to identify entry and exit points to trade a security or futures".
It is also known as Algorithmic Trading. A completely automated trading system will be the one which is able to place orders also by itself based on the signals generated by the system.Most trading systems are created based on technical analysis, or just utilize the price discrepancies in the market.
e.g. If a security is being traded in two exchanges and there is a small difference in price, buying from one market and selling in the other will generate a small profit.
We will discuss more about creating trading system based on technical analysis.
No comments:
Post a Comment