Automated Trader

Definition - What does Automated Trader mean?

An automated trader refers to a trader who relies almost entirely on software to inform his or her trader. An automated trader will usually have sophisticated software that he has tested and customized to carry out a particular strategy. Once the software has been optimized, the trader is mostly responsible for watching the screen and approving the trades that the software suggests as opposed to actively screening charts for trading opportunities.

ForexDictionary explains Automated Trader

Automated trader is sometimes used in a derogatory way, as in "You’re not a day trader. You’re just an automated trader." Because of the heavy dependence on technology, it sometimes looks like the machines are running the trader rather than the other way around. However, automating pattern recognition, position sizing and other mechanical tasks can greatly free up a day trader’s time and allow for more trades to be made per session.
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