1 / 10

Algo Trading Explained: How It Works, How to Start & Key Pros and Cons

Learn how algorithmic trading works, steps to start, and its pros & cons. Discover strategies, backtesting tips, and risk management for profitable algo trading.

bigul
Télécharger la présentation

Algo Trading Explained: How It Works, How to Start & Key Pros and Cons

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Algo trading: How does Algo trading work? Bigul.co

  2. What is Algo Trading? • Algo trading means the use of computer programs to automate trading decisions and take a more cautious approach in the financial markets. Algorithmic trading involves some pre-determined instructions which execute trades based on your input and offer an unmatched speed compared to manual trading. Bigul.co

  3. How does Algo trading work? Algorithmic trading uses computer programs to execute trades based on predefined rules, analyzing data and acting in milliseconds. A subset, high-frequency trading, leverages advanced tech to place orders at lightning speed. With Python tools powering these systems, algo trading is rapidly making manual trading obsolete. Bigul.co

  4. Steps to Start Algo Trading Learn the Basics Choose a trading strategy Select a programming language Use a Trading Platform Bigul.co

  5. Back test Your Strategy Deploy and Monitor Bigul.co

  6. How to Do Algorithmic Trading Profitably? Identify Opportunities: Spot market inefficiencies, trends, or patterns aligned with your goals. Back test Strategies: Test on historical data to refine and improve performance. Manage Risk: Use stop loss, position sizing, and diversify to reduce exposure. Monitor & Adjust: Markets evolve—regularly review and tweak algorithms. Key to Success: Strong strategy, backtesting, risk control, and continuous updates. Bigul.co

  7. Pros & Cons of Algorithmic Trading • ✅ Advantages: • Speed & Efficiency: Executes trades in milliseconds, reduces slippage. • Diversification: Monitors multiple markets simultaneously. • Back testing: Test strategies on historical data before live trading. • No Emotions: Eliminates human biases in decision-making. Bigul.co

  8. Pros & Cons of Algorithmic Trading • ❌ Disadvantages: • Technical Risks: Glitches or bugs can cause huge losses. • High Cost: Requires significant capital for development & maintenance. • Market Impact: Can amplify volatility and cause rapid price swings. • Over-Optimization: Past-focused strategies may fail in real markets. • Lack of Human Insight: Misses qualitative judgment during rare events. Bigul.co

  9. Address • Bigul-Bonanza Portfolio Ltd, 2003 & 2004, The Affaires, Sector 17, Off Palm Beach Road, Sanpada-400705 Get in touch Email ID • support@bigul.co Contact No. • 9090491913 Bigul.co

  10. ThankYou! Bigul.co

More Related