Algo Trading FAQ
What is algo trading?
When you allow your computer to execute trades for you with a specified set of rules it is called algo trading. It is also recognized as robo trading, auto trading, quant trading, etc.
What is the need of algo trading?
The only fact that: “Computers are better and profitable traders if given a proper set of trading rules.“ is enough to state the need. In the modern age of artificial intelligence, algo trading is becoming increasingly popular in the global trading community. It has already been in the market since the last two decades but available only to institutional traders. But now even individual retail traders have access to this technology.
What are the benefits of algo trading over manual trading?
The list can be run too large for you to read, but here are a few major benefits:
- As stated above computers are better traders than human if it is given a proper set of rules.
- Execution of trade is 10 to 100 times faster than manual, resulting in better trade execution price and almost zero missing opportunity of trading.
- Complete removal of emotional and unlogical trades which in most case result in large losses.
- Traders fill relieved from trading stress that results from constantly being in the “Judgement” mode. So traders can concentrate more on other factors which can make their trading profitable.
- Reduced risk of manual errors when placing trades.
What are the requirements for algo trading?
- Reliable and fast computer machine
- Technical or fundamental trading software like Amibroker/MetaTrader
- Demant account with auto trading facility enabled
- Good trading strategy
- Trading Robot that fetches signals from trading strategy and sends to broker
- Reliable Network connectivity
- Real Time Market data
- Availablity of large historical data for backtesting
Here is a short video explaining most of the basic concept of Algo Trading.
We have team of enthusiastic entrepreneurs, brokers, software expert, strategy developers and real time data providers. They can provide you complete solution for semi-auto to fully automated trading without your intervention in trading decision. We can also help you develop custom trading strategy as per your needs which is compatible for fully automatic trading.
If you are interested in Algo Trading or want more details please send your query in the below form: