Check the permissions and decision points. “Automated,” “AI-assisted” and “bot” are not reliable descriptions of who can place an order.
Three workflows to distinguish
Manual
a person reviews the information, decides and submits the order.
Assisted or semi-automated
software prepares analysis or actions; a person controls a defined step. Check the exact boundary.
Automated execution
software submits orders under an enabled configuration. Human oversight remains necessary.
- Condition
- Price crosses a threshold
- Action
- Send an alert
Automation does not require AI
A fixed rule does not need AI
A price alert can follow a fixed rule without AI. A model can add analysis or forecasts without placing orders.
Ask which parts use AI, which follow fixed rules and who can change them. Do not assume the model improves after every trade.
- Save
- Add an idea to a watchlist
- Review
- Open an order ticket
- Submit
- Send an order
Different services behave differently
What does approval actually approve?
In one service, Approve might save an idea; in another, it opens or submits an order. Similar buttons can have different consequences.
Check whether approval covers one trade or an ongoing strategy, when proposals expire and what happens if you do nothing.
Account access and stopping the system
Identify the software provider and the institution holding the account.
Check read, trading and transfer permissions.
Know how to pause the strategy and revoke access.
Check pending orders and open positions separately; stopping a bot may leave both active.
Confirm who handles order problems and which records are available.
Backtests, simulations and live results answer different questions
Backtests use historical data. Simulations use hypothetical accounts. Live records show actual transactions under specific conditions. A balance screenshot does not distinguish them.
Check costs, unfilled orders, the testing period and whether all trades are included. Selecting the best result from many settings can mislead.
What still requires attention?
Monitor errors, changing conditions and unexpected activity. Know how alerts arrive and who can stop the system.
Verify the provider and any required registration independently. A broker connection does not endorse the strategy or its performance claims.
- You
- Decisions you retain
- Software
- Tasks you delegate
- Access
- Permissions you enable
Questions before choosing a workflow
List which decisions you will make and which tasks software will handle. Compare that list with the service’s actual permissions.
If the path from alert to filled order is unclear, request a practice demonstration. Check that you can inspect records and stop the process.
Common questions
Is automated trading the same as AI trading?
Does human approval make a trade safe?
Does turning off a bot close its trades?
General education, not a personal investment recommendation. Examples are fictional. Investing involves the risk of loss. Source material refers primarily to U.S. securities markets; availability and rules vary by country and provider.