Introduction to Automated Trading Systems Automated Trading Systems (abbreviated ATS) are computer programs that execute buy and sell orders in financial markets automatically, following predetermined algorithms. Such systems bring precision, discipline, and efficiency to trading by mostly eliminating emotional biases, ensuring timely execution, and allowing for 24/7 trading. ATS also offer the benefits of backtesting,…
What is backtesting, and how do you backtest trading strategies? And does backtesting a trading strategy work? In your day-to-day life, before you buy anything — a mobile phone, a house, or a car — you would want to check its features and history to know if it is worth your money. That also applies…
Trading performance and strategy metrics are important parameters to evaluate the quality of your trading strategy + both for your live trading strategy or if you are backtesting. Just looking at the end result, the CAGR or the annual returns, might be very misleading. If you’re a short-term trader we are pretty confident in saying…
