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Showing posts with the label Algorithmic trading

Is Algo Trading Possible for Retail Traders? How can Algo Trading benefit Retail Traders?

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Is Algo Trading Possible for Retail Traders? It's been long since algo trading has put its feet in the world of trading and it's been approximately 13 years since algo trading made an entry into the Indian trading scene. And since then algo trading has gained a lot of eyeballs and trust of the majority of the traders around the world and continues to do so by simplifying trading and bringing in new avenues of earning and trading to people. In India, algo trading is a growing field and holds approximately 50% of the total trade volume, most of the trade volume is not formed by individual traders but institutions doing HFT (High Frequency Trading). Individual traders or Retail Traders are still very apprehensive about this changing scene in the trading world. Being surrounded by many myths, lack of knowledge on the subject matter and resistance to change can be some contributing factors. But the bottom line here is many retail traders are turning to algo trading for making profit...

How are High-frequency Trading, Automated Trading and Algorithmic Trading Different

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Difference among High-frequency Trading, Automated Trading and Algo Trading Many people mistake High frequency Trading & Algorithmic Trading to be the same thing and some use automated trading & algorithmic trading as synonyms. Even if some do realize that three of them are different, it's difficult to figure out what differentiates them. So, here are some definitions and differences that will clear your confusions What is a High Frequency Trading? High - frequency trading or also abbreviated as HFT is a type of automated algorithmic trading that uses powerful computationally-oriented programs to perform trade in large numbers of orders in a few seconds. HFT is recognized by its ability to perform large amounts of trades at a very high speed, its high turnover rates and high order-to-trade ratios.  In HFT , the execution speed determines the success of the traders. The faster the execution the more will be the profit and the lower the execution the lower will be the profi...

Algorithmic Trading System - How to Setup One for You

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Algo  Trading System and How it Works Despite being introduced in India for almost a decade ago, Algo Trading feels new to many and rightly so because it is a complex and new concept.  Around 15% of the trading in the cash market segment of India is through algo trading and if you are a Trader and unaware of it then this is the right place for you.  Because, as any other technical advancement that happens in the 21st century, we are going to adopt algo trading either today or tomorrow. So, it is good to get familiar with the concept.  We have had detailed discussions in our previous blogs explaining what is algo trading , how algo trading benefits a trader , does it really have a future, some myths associated with it and some most worked in algo trading strategies .  Next up, here we are going to explain how an average Algo Trading System actually works.  Algorithmic Trading or Algo Trading as you all know or may not know places trade for you when ma...

14 of The Tested and Most Worked in Algo Trading Strategies

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Algorithmic Trading Strategies First of all, nobody can guarantee anything about the financial market and how it will react to a day's event, but with an optimistic mindset everyone is trying out a strategy to make profits and remain in the market.  Whether a given strategy is successful depends solely on market conditions. Here we list some potential strategies for Algorithmic Trading that are used or can be used to make profits: Strategy 1: Trend Identification As Algo Trading can process a large chunk of Data easily, it can help one by analysing the trends early and can help in identifying how short or long lived the trend will be.  And since algo’s strategies are made based on pricing, volume and various similar concepts to which a trader is familiar, he can easily rely on the produced results.  It is difficult for an individual to analyse this huge data in real time and not miss out on things. Algo does that for an individual. So that he can perform trade in real ti...

4 Myths and Facts about Algo Trading that needs to be Cleared

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4  Myths about Algo Trading and Countering Facts Who hasn’t been a victim of Fake News and Rumors? With the advent of Internet & Social Media and all the amazing things that came with it, came rumors. No one I repeat not even one industry has been spared by the virus that is rumour mill.  These rumors bring with themselves endless myths built around an industry that are not even true in real life. These rumor mills then convert into myths and become reality for a large no. of population.  Algo Trading being one of the emerging industries, growing at a rapid rate has also not been spared by the myth factory. So, today we are going to bust some myths about the Algo Trading that needs to be cleared. Let’s begin with :- Myth no. 1 -  Algo Trading and High Frequency Trading are same Most of the people on the internet think Algorithmic trading and High Frequency Trading is the same thing because of the obvious thing that groups them together “Algorithms”. But b...

The Future of Algo Trading in India and its Evolution Over the Years

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The Future of Algo Trading in India and its Evolution Over the Years    You may or may not be familiar with the working of Algo Trading , but if you trade frequently you may have come across the term or something like Automated Trading or Algorithmic Trading and you possibly know what is it (for those unfamiliar with Algo Trading, refer to this blog about Algo Trading and it’s Benefits ). Many People wonder is Algo trading just a phase or is it an actual serious business? Those who want to incorporate trading through a comfortable medium must have wondered is it secure enough to start Algo Trading now. What if the buzz fades? What if the phase passes and you have nothing left for the future that you invested your money in.  So please be with me this whole time while we go through some facts about the evolution of Algo Trading over the years in India and the very possible future of it. Well before I tell you what the future is going to be like, first let's just ...