Technical Analysis

Explanation of the term 'System Trading'

Definition of the term System Trading

Term
System Trading

Usage
Technichal Analysis, Trading term, Trading Software, Trading Tools

Context
Answers questions: What does system trading mean? Define system trading. Explain system trading.

Definition of System Trading

System Trading refers to the activity of buying or selling securities based on indications from a set of rules, often referred to as Indicators or Formulas, put together into a Trading System.

In one sentence: When a trader lets a number of preset rules determine the actions to take in the market.

There exist a number of development platforms (technichal analysis software) to automate system trading.