Programs designed to execute trades on behalf of the user, based on pre-programmed rules or algorithms, represent a significant tool in modern financial markets. These applications analyze market data, identify potential trading opportunities, and automatically place orders, all with minimal human intervention. For instance, a program may be set to buy a specific stock when it reaches a certain price point and sell it when it achieves a defined profit margin.
The utilization of these sophisticated tools can offer several advantages, including increased efficiency, reduced emotional trading, and the ability to backtest strategies using historical data. The emergence of such technologies has democratized access to advanced trading techniques, previously reserved for institutional investors, allowing individual traders to participate more effectively in the financial landscape. Early iterations of this technology date back to the rise of electronic trading platforms, with continuous advancements driven by increased computing power and sophisticated algorithmic development.