Automated trading refers to the use of computer algorithms to execute buy and sell orders in financial markets without human intervention. In this setting, traders design strategies based on specific criteria, such as price movements or trading volumes. Once programmed, these algorithms can monitor market conditions continuously and make trades at high speeds.This approach offers several advantages. It can remove emotional biases from trading decisions, as trades are executed based on data-driven strategies. Additionally, automated systems can identify and act on opportunities much faster than a human trader.Traders often use specialized software or trading platforms that offer automation features. They can backtest their strategies using historical data to evaluate effectiveness before deployment.While automated trading can be profitable, it also carries risks. Market conditions can change rapidly, and algorithms may not perform as expected in volatile environments. Therefore, ongoing monitoring and adjustments to the trading strategy are essential for maintaining effectiveness and managing risk.