Specification
There are many approaches to building an automated trading system. We will describe only a few major ones.
The first approach rests on math. A developer tries to create a sort of an equation that can consider many factors. This approach is based on the firm belief that price movements are managed by a model that can be found using available historical data.
In most cases, the followers of such an approach know too much math but know nothing about/are not interested in the market. The market is a pure abstraction, a type of an intellectual game for them. This approach usually leads to many years of study and development, while a definite result in the form of a working automated trading system is not so important.
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