What is Algorithmic Trading?
Algorithmic trading, or algo trading, is a way of making trades in the stock market or other financial markets using computers instead of people. Imagine that you have a set of rules for making trades, like "if the stock price goes up by X amount, buy Y shares".
A computer program can follow these rules and make trades for you, without you having to constantly watch the market and make decisions.
This is algo trading!
Allowing The Computer To Trade!
A computer trades the markets by following a set of rules that are programmed into it by a person. These rules tell the computer when to buy and sell stocks or future contracts.
This is important because it can save a lot of time and effort compared to traditional methods of trading, where a person would have to constantly watch the market and make decisions.
Algo trading also eliminates the influence of emotions, which can cause people to make bad decisions when they're trading. By using a computer, traders can make trades more quickly and accurately, and they can also test different trading strategies to see what works best. However, it's important to remember that algo trading still requires human oversight, and there is always a risk involved in any kind of trading.
Why Become An Algo Trader
Algo trading has revolutionized the world of investing, allowing traders to take advantage of data-driven decisions and multiple markets all at once. This tech-driven solution eliminates emotion from the decision process and gives traders access to multiple markets with greater efficiency. Plus, backtesting provides an opportunity for traders to confirm their trading ideas are reliable before executing trades in real-time - giving them more confidence and saving money. Thanks to algorithms, clear advantages are available for those looking to maximize potential profits - whether they’re novices or experienced traders.
Remove Human Emotion
Algo trading enables traders to remove emotion from their trading process & make decisions based on data, helping them stay focused & better manage risk to achieve consistent results.
Multiply Yourself!
Algo trading enables traders to access more markets than could be accessed manually. This allows traders to capitalize on market movements more efficiently across multiple asset classes.
Backtest Your Ideas
By running simulations before executing trades in real-time, traders can see if their trading idea works before putting money on the line!
Other Benefits Include...
Video
What is algorithmic trading and does it work?
Why I Choose Algorithmic Trading Over Discretionary Trading
Free Mini Course On Getting Started With
TradeStation & EasyLanguage
If you want to dive into algo trading, your first step is to download the TradeStation platform and learn EasyLanguage!
TradeStation is the platform I use for all my algo trading. It comes with EasyLanguage - a computer programming language created by TradeStation. With TradeStation & EasyLanguage it's super easy to start algo trading.
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