Algo Trading - Implementing Your Strategies


Algo Trading involves developing and implementing trading strategies and rules using software and programming codes.
Algo Trading - Implementing Your Strategies

Today as on 7th Jan 2019, the day began on a strong note but post lunch market saw indices taking a turn, as profit booking in D-Street. How can one be a profitable trader in this situation and we have been facing this for past couple of years.

Currently 75% of global trade and 30-50% of trade in India are via Algo Trading.

Normal or manual trading, as we know, involves the buying or selling of stocks/shares. An algo trading can be defined as a set of steps or rules which are followed to buy or sell stocks/shares. Algo Trading involves developing and implementing trading strategies using computer codes and programming. A trading strategy is a set of rules which are defined to buy and sell. These trading strategies can be tested on historical data to evaluate their performance. This process is called as Back-testing.

How is Algo Trading different?
The initial analysis, that is, analyzing the signals and charts is almost the same in both, manual trading as well as algo trading. Once the logic and rules are set then the trading decision is made by the machine. This eliminates human error and emotions from the decision-making process thereby reducing the risks involved.

Why You Need Algo Trading?
Speed: Due to the use of computers and technology to implement trades, the execution speed is increased tremendously.

Accuracy: As the process is taken over by the machine, it reduces the human errors and accuracy is increased.

Discipline: Trader’s emotions are eliminated in algo trading as the decision making occurs according to the trading algorithm, bringing in a higher level of discipline in trading.

How to start Algorithmic Trading?
A person who doesn’t have adequate knowledge in this domain but wishes to build a career in algo trading or start trading algorithmically, the ycan share their strategies with us which we can implement and code it. You just need to do analysis for which stock you need to do algo trading and you are good to go. More info can be found here.

What does the future hold for Algorithmic Trading?
In developed markets where algo trading has been there for decades, algorithmic trading already accounts for more than 80% of the trading volumes in leading exchanges. In Indian markets algorithmic trading was allowed by SEBI in 2008. The market witnessed a rapid growth in algorithmic trading and  today its share is more than 40% of the exchange volumes.

We are one of the best company in Lucknow for developing Algo Trading platform and application. You can even try our free algo trading software.

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