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Showing posts from March, 2020

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...