Algo Trading
Algorithmic trading, often referred to as algo trading, is the process of using computer algorithms to automate trading strategies. These algorithms are designed to execute trades based on predetermined criteria such as timing, price, or volume, without the need for human intervention.
By leveraging mathematical models and complex formulas, algorithmic trading aims to optimize trading efficiency and effectiveness, executing orders at speeds and frequencies that would be impossible for a human trader to achieve.
How Algorithmic Trading Works
DATA COLLECTION AND ANALYSIS
Algorithms start by collecting vast amounts of historical and real-time market data. This data includes stock prices, trading volumes, economic indicators, and even sentiment analysis from news and social media.
STRATEGY FORMULATION
Why is algo trading preferred by trader
High accuracy and Speed
Algo trading executes orders faster and more frequently than humans, enabling real-time capitalization on market opportunities
Minimizes Emotions
Execute trades free from emotions, ensuring optimal profit-taking and effective loss-cutting decisions.
Consistency and Discipline
It ensures consistency in executing trading strategies, as decisions are based on predefined rules, that are free from human emotions or biases.
Reduced Transactional Costs
It can minimize transactional costs by executing trades at optimal prices and reducing the impact on market prices.
Portfolio and Risk Management
Finely tune your risk management by using algorithms to implement stops and limits on your behalf
Backtested Strategies
It allows for testing strategies using historical data to assess their viability before applying them in live markets.
Real-time Monitoring and Customization
Traders can monitor live market data and make real-time adjustments to algorithms, allowing for customization and adaptation to changing market conditions.
Our Live Algo Trading Strategies