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How to Code an Own Algorithmic Trading Strategy

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   Your algorithmic trade follows exactly your trading strategy. The only difference is that instead of you doing it manually the computer does it for you. Therefore, the first step in writing your algorithmic trading strategy is to have a full-proof trade plan. Algo trading without planning can lead to loss or confusion. What not to do If you are thinking, copying a trading strategy online and then coding it can make you rich, you are wrong. There area lot misleading information online that promises you instant richness. Most of them, however, fail to give you any results. The first step to code your algorithm trading strategy is to have a tested strategy. This then needs to be designed, built, and maintained by you to make your code run for you. What does your algorithmic trading code do for you? The idea is simple. Your code in your trading strategy in the form of an algorithm and the code perform the same steps for you. Your code performs buy and sell transact...

How is Algorithmic trading system helpful for retail traders?

Since the entry of Algo trading, it was majorly used for stock market purpose where brokers and institutional traders. As the time changed, retail traders too started adopting this Algorithmic trading method. The Algorithm trading system is gaining massive upgrade in the retail industry. Many e-commerce companies are now using this mathematical trading version. Let us find out how- Let’s say, John is a computer science graduate, now running his own e-commerce website also earning extra by programme trading in the derivatives markets. Algorithmic trading, also called as the automated trading system , every trade is executed using software. The system carries existing instruction having back-tested algorithm trading strategy . There are multiple benefits traders can have using Algorithmic trading. Some of these are- fast trade execution, accuracy, the ability to discard ‘emotions’, etc. Not all these benefits are limited to stock traders, but also to retail traders. ...

What are the different types of Algorithms that can be used for automated trading?

If you are into stock trading and have been still using the traditional method of trading, then it’s time to bring some change. Automated trading, also called Algo trading, is creating waves in this sector, bringing down human error costing huge loss. Algo trading uses a computer program following the defined set of instructions to place the right trading. In other words, it is a trading strategy where a set of rules are applied to the given input data to generate entry and exit signals (buy/sell). However, to use this Algorithm trading software , you need to undergo exhaustive quantitative research work. Brains behind the quantitative trading strategy are called Quants. The individual is a professional employed by a quantitative trading firm that applies advanced mathematical and statistical models to create alpha- seeking plan. There are different types of automated trading strategies that are implemented. Each system or strategy works differently to improve the odd...

Tomorrow's algorithmic trading technology will have better results and better risk management

Over the past few years, financial trading has witnessed a major change in terms of technological update. For traders, this is a major boost because these updates will help them in getting more power for fast execution of trades and reducing human errors. The computer-programmed software has helped traders to trade with comfort and without error. Of all the trading technology update, Algorithm trading software is the major one. Also called as Algo Trade, this software solution is designed for traders to manage funds easily. In the past few years, trading software developing companies are assisting traders to setup trading desk with zero errors.  According to one data, the global algorithmic trading size is around $11.1 billion in 2019 to become $18.8 billion by 2024. This further expands the CAGR of 11.1 percent. Algo trading is not new in the market, but entered in the mid-1980s. Presently, more than 70 percent of trading volume is conducted using Algo Trading software....