What Is a Limitation of the Automated Trading System

question 1

Multiple Choice

What is a limitation of the automated trading system?

• A) has potential for system quirks
• B) generates orders as soon as trade rules are fulfilled
• C) trades multiple accounts at one time
• D) Traders can backtest their rules to determine if the result is profitable.

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Definitions:

Associate

An entity over which an investor has significant influence, typically evidenced by owning 20% to 50% of the voting stock, but not control.

Remaining

The portion or quantity left over or unallocated after other parts have been accounted for or allocated.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns, usually through stocks, bonds, or real estate.

Investee

The entity in which an investment is made, often subject to the influence or control of the investor through ownership of equity shares or other mechanisms.