Automated trading uses computer programs to execute trades based on predefined mathematical rules, eliminating the need for manual intervention. Such systems typically comprise a strategy engine to process market signals and define entry and exit points, a data‑processing module to integrate historical and real‑time market data, and an order‑management system that connects to brokers via APIs to execute and monitor positions. Automated trading helps investors seize market opportunities with greater speed and accuracy and includes risk‑management tools such as stop‑loss orders, position sizing and portfolio diversification to protect capital. As artificial intelligence and machine learning advance, these platforms can analyze vast datasets and uncover complex patterns, improving predictive capability and overall performance