With the technological advancements in the 21st century, trading practices came up with many advanced modules for the benefit of humanity. One such efficient trading strategy is Algorithmic Trading or Automated Trading.
Stats say 70%-80% of the overall trading volume is generated through algorithmic trading in the U.S stock market. In India, however, the concept is still new and needs vast exploration. This article presents you with all the basics of Algo trading you need to know as a beginner.
WHAT IS ALGORITHMIC TRADING?
Algorithmic trading is an automated pre-programmed computed instruction that follows a series of steps to place a trade. The concept is that the computed program can generate speed, frequency, and money that no discretionary trading can. The volume of work that algo trading can do is impossible for a human trader to perform.
Algo trading in India also works similarly. The set of instructions provided in the program includes price, time, quantity, or any digital entity. The most significant part of automated trading services is that it is more flexible, liquid, and devoid of human emotions. Hence, more efficient, fast, and profitable.
BENEFITS OF ALGORITHMIC TRADING:
- Algo Traders in India can make instant and accurate trading orders.
- The pricing generated in Algo trading is the best compared to other modules.
- Time and execution are devoid of any human mistake.
- Transaction cost is diminished due to orders made on time.
- Multiple market management can be done very swiftly.
- Human emotions and psychology do not come into consideration in Algo trading. Therefore, the bulk of mistakes they make is avoided.
- There are several back-tested algo strategies available for you to do your research from.
- The speed of the transaction is unmatched in Algorithmic trading.
HOW TO START ALGO TRADING IN INDIA?
The concept of Algo trading is bound to attract a lot of traders looking for a quick profit. But, a significant percentage of them do not know where to find Algorithmic trading services in India. There are several online websites available that offer ready-made, customized algo modules for you. Such websites forward highly skilled Algo trading brokers in India.
They explain the market strategies and your program algorithm in detail to you. You can now join Algo trading very quickly without having much knowledge about programming firsthand. Do your research and find the best algo trading website for you.
Algo trading involves several forms of trading and investments for you to choose from. Every algo strategy needs to be identified as profitable before you start working on them. The most significant part is to transform a strategy into an integrated computed program. One needs to have high programming knowledge to do so. And this is the role Algo trading websites play. As a beginner, you should always seek professional help before exploring in uncharred waters.
Also, everyone should be aware of the risks factor involved in the Algo trade. An imperfects algorithm can cost you quite a lot of money. So, do your research and decide accordingly.
Having read the entire article, we are sure you understand all the basics of Algorithmic trading. You can now take your stock trade to whole another level with a robust algo trading strategy.