What is system trading?

In system trading, the decision to make a trade is based entirely on the trading system. System trading decisions are absolute. They do not offer the opportunity to decline to make a trade, based on the trader's discretion. If the criteria are met, the trade is taken.

Can forex trading systems be automated?

Forex trading systems can be automated as they are essentially just algorithms that a trader runs based on the market signals. Forex traders often find developing and tweaking their own system an important part of the learning curve. Forex system trading is a strictly rules-based approach to trading.

Can traders run automated trading systems through a server-based platform?

Traders do have the option to run their automated trading systems through a server-based trading platform. These platforms frequently offer commercial strategies for sale so traders can design their own systems or the ability to host existing systems on the server-based platform.

What is the difference between discretionary trading and system trading?

Discretionary trading is decision-based trading. The trader decides which trades to make based on current market conditions. System trading, on the other hand, is rule-based trading. The trading system decides which trades to make; current conditions don't matter. Discretionary trading and system trading can be equally profitable.