The dizzying boom of algorithmic trading

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.

Variety of Algo trading system

We usually talk about algo trading companies in India when it's the second step, the execution, which is automated. The trading algorithm relies on a sophisticated economic and mathematical model to analyze the market and execute a predetermined investment strategy. 

The simplest example is the trading algorithm, whose function is to split orders for large quantities into smaller orders ("child orders") and issue them at a specific time to one or carefully chosen platforms in order to optimize execution conditions (purchase or sales prices and transaction costs).

With high-frequency trading, automation wins the decision process itself, but at a different level. The algo trading in India analyzes real-time market data, identifies imbalances or inefficiencies regarding liquidity or price, translates them into trading opportunities and implements them. 

Automation and very low response times make it possible to take advantage of minimal variations and of very short duration, which a human operator would not have been able to exploit or even detect.

Variety of automated trading systems: All program advisors can be divided into these main groups:

•Programs that replicate transactions. Thus, they can focus on the activities of any trader or combine information on transactions at the same time, a few traders. 

•Programs that can create their trading signals. To this end, a technical analysis of the binary options. We think a program of this type is preferable, since those using less dependent external factors.

•Trade program - a reliable assistant, ready to replace anytime you are not in the mood or not able to trade. In short, everything is almost like trading in other fields of activity: the program cannot replace a human being in its entirety, but the skillful use will greatly facilitate his life!