Algorithmic trading is a technique of executing a large order using pre-programmed trading instructions accounting for variables such as time, price, and volume to send a small piece of the order out to the market over time. They were developed so that traders do not need to constantly watch a stock and frequently send those slices out manually. The algorithm does this all on its own. In today’s fast-paced financial markets where volumes are high and volatility can be extreme at times, the manual intervention has its limits. The human brain can only grasp before making mistakes due to information overload or stress. In addition, algorithms provide greater consistency than humans typically hope for when following the rules imposed by an investment strategy or trading plan. Algorithmic trading strategies rely on technical analysis. It is important to remember that algorithmic trading strategies rely heavily on technical analysis. It means
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