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An automated trading plan is one where buy and sell orders are automatically placed based on an underlying system or program. When the trade conditions in the underlying system or program are met, buy or sell orders will be placed. 

Automated trading occurs when orders are placed automatically based on a preprogrammed strategy. An advanced auto trading program, which limits human interference in the trading program, requires a well-written and sophisticated trading program. In order to ensure the program is functioning properly, human supervision is still required. Automated trading allows orders to be executed as soon as the conditions of a specific strategy are met. Almost any trading strategy can be incorporated into an automatic trading program, however, the strategy must be programmable, and ideally, the strategy should be tested for profitability thoroughly before implementation. It is the process of placing buy and sell orders automatically in accordance with a predetermined strategy. The use of advanced auto trading, which minimizes human interaction with the trading program, requires the creation of well-written trading programs. Human oversight is still required to ensure the program is operating correctly. Automated trading allows orders to be automatically executed when certain conditions are met by a pre-programmed strategy.