Overview of Algorithmic Trading.

Overview of Algorithmic Trading. Take a step forward to be a part of the growing Algo Trading community. Trading Algorithm actions, positions, design, articles and further analysis.

Algorithmic Trading (Algo Trading) , Genetic Algorithm or Quantitative trading, are terms of trading technics that usually implemented to a computerised software.
The process of extracting such a system involves with a specific reaction to every situation that could possibly be anticipated in the market, rather than operating by an intuition or a vague trading idea.

Using statistics and mathematical models, intuition can be converted to into a Trading Algorithm that analyse a complex situation and reacts according to pre designed rules.
When the Trading Algorithm model proves to be likely profitable after passing the rigorous statistical tests, the next step would be to implement the model on a computer systems for automatic execution.

Algorithmic Trading Strategies:
1) Moving Average Crossover.
2) Linear Technical Indicators.
3) Random Walk.
4) Stochastics.

This are good examples for trying to find patterns of repeated behaviour in the market.
A good question is: Does the market realy have organized patterns of price movements? The answer might be just a simple NO.

However, the market is full with traders that belive in a YES as an answer. Otherwise they would not be able to excuse the fact that they participate in the trading game.
The truth is that Chaos rules the entire world, as well as it rules the trade in particular. To overcome that, the Human Trader use various states of mind as fear, hope, joy, triumph etc.

In conclusion, Chaos is not the preferable environment for a human being to act. A computerised system would be preferable in order to answer many situations that can be encountered during trading. Take a step forward to be a part of the growing Algo Trading community.

13-Apr-2013

Further reading

Algorithmic currency trading. Based on an original Trading Algorithm. Implements many trading aspects, as well as portfolio management, investment strategies and tactics. Manage a trading account with the software is available for new investors. For further details please continue to Automatic account management services .
Please notice: Trading foreign exchange should be carefully planed. Any trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Please be aware that a possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should never invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Useful links:
ALGORITHMIC CURRENCY TRADING   Automatic account management services for currency trade   Silver Lines trading algorithm hosting services

Video examples

Watch video examples of short term trading. All recorded at real time for your convenience.

Charts list

A list of charts that demonstrates the Trading Algorithm buying and selling points. Please select your choice of currency pairs:

Suggested search terms

More search terms for your benefit, from the smart algo-trader blog and articles.

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