The Stock Market Sees High Levels of Automated Trading

The financial markets have been changing rapidly in response to converging forces such as globalization, competition, geopolitics, and demographic shifts. As a consequence of rapid technological change, many new products and services have been developed, which have significantly altered the dynamics of financial trading.

2 Min Read Published February 4, 2022 Updated August 6, 2026 Reviewed by Mike Christensen Fact-checked by Mike Christensen

Innovations in digital trading, such as high-frequency computer trading and algorithmic trading, have grown recently, with the high-frequency trading market projected to witness a CAGR of 7.7% over the forecast period (2025-2030)¹. Algorithmic trading was estimated to contribute nearly 60-73% of all U.S². equity trading in 2018.

Machines Making the Trading Decisions

Computer programs perform buy and sell orders using complex algorithms and formulas without any human involvement. According to older market commentary from Art Hogan, chief market strategist at B. Riley FBR, computers accounted for 50% to 60% of all trades on an average day². When markets are extremely volatile, older commentary estimated computers could account for 90%, illustrating the importance of automated trading in the digitized world we live in³.

Automated trading technology continues to advance². Today's financial markets involve human traders interacting with a huge number of computerized trading systems, but in the future, machines will have the ability to learn and adapt with little human involvement. In order to ensure international growth and prosperity on financial markets, however, future policies and market regulation must preserve the benefits of computer trading, while also working to reduce the possibility of periodic illiquidity and instabilities.

Retail Trader Tools

With automated trading, traders who use this method have an advantage -- they do not have to worry about doubts and fears as humans do when they sense an opportunity to buy. It allows you to make a number of trades in a short period of time, as it removes emotion from the decision-making process. This is due to all the rules of the trade already built into the parameters you set. In addition, with some algorithms, you can follow trends and trade accordingly based on predetermined strategies.

This is all possible because of platforms such as TradersPost. TradersPost enables users of tools like TradingView and TrendSpider to automate trading strategies and connect them to their broker without the need to do any coding. It simplifies the process and removes the complexity of trading, as it makes it easier for retail traders to automate trading strategies using easy to use web-based software.

Want to try it out? Register for a TradersPost account today for free!