This thesis describes the EU Emissions Trading System, it's inner workings, purpose and the affect it has on the price of electricity. The emissions market has become an important part of EU's green initiative, driven by environmental concerns, the need for green energy and green technologies. This is why the participants of the energy market need to adapt, understand and learn how to analyse this market. Because the fundamental changes are rare, it is mostly analysed with technical analysis. Many processes are getting automated in the energy market and it is important for companies to follow this trend and not get left behind. This is why the main focus of this thesis is the process of developing automated analysis and algorithmic trading systems for the carbon market. The thesis elaborates on commonly used indicators, good practices for determining the suitability of analyses and presents the results of simulations for the trading strategy, which was developed as a part of the thesis. The strategy performed well in the simulations, which makes it viable for further testing and use on the market.
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