Tuesday 5 December 2017

The dizzying boom of algorithmic trading

Algo trading India
The Algo trading India, a contraction of algorithmic trading, is gaining importance in stock markets. If it has advantages, it is not without risk, which leads the regulators to take an interest in this significant financial phenomenon.

Algo trading, a contraction of "algorithmic trading" (also called "high-frequency trading") is gaining importance. This practice is based on "machines capable of executing orders at full speed and thus taking advantage of minimal price differences.

A decade later, the boom in Algo trading is spectacular. In the United States, more than 75% of financial institutions and 95% of institutional traders use algorithmic trading strategies. The idea quite laudable behind this theory is to put aside emotions, as well as all human errors (fatigue, distraction, etc.) to keep only the heart of trading: the rules.

The advantages of automatic trading

- First, the algo trading in India solves one of the most significant problems of the trader: his psychological weakness. A robot will indeed respect the rules of your trading strategy. For example, thanks to him, never again will a stop loss move and trade will never be taken impulsively.

- A robot trades relentlessly and without getting tired. Even if he does not sleep at night (useful for the Forex), it will be just as fresh the next day. He will never miss a trade opportunity 24/24 and will not make false manipulations by fatigue.

- A trading automaton thinks quickly, and well, it allows performing millions of operations per second, which leaves humans far behind. It will enable you to act faster than others, and simultaneously monitor a massive amount of different parameters and markets.

- Finally, a robot does not need you to work. You can go to work, go to bed (I let your imagination complete the list) while respecting your strategy without complaining.