Auto trading, also known as algorithmic or automated trading, involves using computer programs to execute trades in financial markets automatically. These programs, often called trading bots or Expert Advisors (EAs), follow a predefined set of rules or algorithms to identify trading opportunities and execute buy or sell orders without direct human intervention.

The algorithms used in auto trading are based on technical indicators, historical data, or specific trading strategies. Traders can either design their systems or use commercially available software. Auto trading platforms are widely used in forex, stock, and cryptocurrency markets, offering features like backtesting, risk management, and real-time monitoring.

The primary advantage of auto trading is its ability to eliminate emotional decision-making, a common pitfall for traders. Automated systems execute trades with precision and speed, capitalizing on market opportunities in milliseconds. They can also operate 24/7, making them ideal for markets like forex, which trade continuously.

However, auto trading has risks, including system failures, over-optimization (curve fitting), and vulnerability to market volatility. It requires regular monitoring to ensure the program operates as intended. Successful auto trading often combines technical expertise, a sound strategy, and an understanding of market dynamics.