Algo Trading

What is algorithmic trading?

Algorithmic exchanging or algo exchanging in brief (moreover known as automated trading), is the method of utilizing high-speed computers, which have been setup run a characterized set of steps for the opening and closing of trades, all of which are based on procedures formulated by the human trader.
The program can consequently alarm the traders at whatever point exchanging openings that fit into the characterized criteria emerges, and also can act on them.

Benefits of the algorithmic trading

Getting rid of emotions from trading

It is not that hard to build a trade plan, but it is not easy to stick to it. That’s where a computer-programmed robotized trading system’s part comes into play. By getting rid of sentiments from exchanging, and executing set-ups based on a pre-defined plan, you’ll not let feelings become the issue for taking profit very early, or cutting loss very late.

Time spared from monitoring your trades

The automated programs, by their name, spares you the effort of monitoring your screens all day to look for new trading openings or to worry about when to close a trade. The time needed to scan thousands of markets for an entry signal is also removed.

Possibility to check and refine strategies

It is troublesome to discover an ideal technique that can withstand the test of time when the conditions of the market are constantly altering. Therefore, it is imperative to refine your methodologies occasionally also when they are functioning as expected. A key metric to see out for in successful exchanging program is the greatest drawdown (max loss from a peak to a trough of a portfolio). Keep in mind, a 50% loss requires a 100% profit to breakeven.

Backtesting

Backtesting is the method of testing the viability of the trading strategy, based on authentic information before using it for real trading. It’s all about probability. Finding the leading strategy for a specific market can assist you amplify your probability of success.

How do I get my trading automated?

MT4 is a trading platform that is broadly utilized all over the world. A major feature of MT4 is the availability of Expert Advisors (EAs) – automated trading systems that can be downloaded and implemented. If you have programming knowledge, can also attempt to write your own EAs and test them on MT4.