Search the Community

At present automation has changed our lifestyle. Now we are getting more and more depended on technology day by day. It has changed the way of business/investing. Now we got several types of robots or tech to do our work for us even online trading. In 2008, SEBI allowed automated trading in India. Since then, the number of companies that use algorithmic trading has increased, with current estimates put the figure at 50% of the total volume. This figure is still low when compared to developed countries like the US where trading volume more than that in India, 70-80% of trades done through algorithmic trading. This makes a career in algorithmic trading in India all the more interesting, where the concept is still relatively new in comparison with developed countries. Let’s try to understand 5 essential facts about algorithmic trading in India. Prerequisites Before You Start Algorithmic Trading Both stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have different prerequisites before you can get the approval to start algorithmic trading. Technically, a person can become a member of the trade and direct trade through the exchange by meeting certain criteria. The members of the exchange (s) can apply for direct approval by the exchange. On the other hand, non-members can apply for approval through their broker. Approval is a multi-step process the right to participate with the relevant algorithmic trading strategy in a trading environment pretend, get it approved by the auditor to give a demonstration to exchange for the approval of the strategy. One should note that any change in the algorithm must go through an approval process before it can be implemented the exchange. The Role Of Co-Location In The Market It is known that the first to react to the news can use it to their advantage. In the race to be the fastest to respond, most of the high-frequency trading (HFT) firms rent space in a rack server on the same network right on the spot exchange itself. This is referred to as the ‘co-location’. The advantage of co-location of reduced latency, which is the time your system needs to respond to any trigger, as the company can respond quickly when compared with those who house their servers away from the exchange. This idea, your data has to travel less distance, resulting in a faster response. Co-location is generally required only for HFT strategies such as arbitrage, market making, etc. that require a high level of technology and infrastructure spending and therefore used mainly by institutions and proprietary trading houses. Interestingly, India has one of the co-location charges the lowest among peer exchanges worldwide. From the perspective of a retailer or individual, Co-location has led to a more efficient market because of a decrease in bid-ask spreads, as market makers can respond more quickly to new updates and is able to offer much more stringent price. One study by Aite Group a few years ago in the US has pegged the savings to retailers/individuals at nearly $ 250 per year! Type Of Algorithmic Strategies Contrary to popular opinion, not all algorithms designed for high-frequency trading. There are various algorithms other than arbitrage and market-making algorithms designed by institutional investors and retail traders to trade in the market using the algorithm. Some popular algorithms including: Momentum / Trend Following – The algorithm is trying to find the company’s stock price trends by using technical indicators and / or quantitatively different to analyze the available information. Once these are identified, the trader can place a trade depending on the perceived profitability of the strategy. Statistical Arbitrage – One example is a statistical arbitrage trading partner where we see the ratio/spread between a stock price, co-integrated. If the value of spread beyond the expected range, then you buy a stock that has gone down and sell stocks that have outperformed in the hope that the spread will return to normal levels. Statistical arbitrage can work with a hundred or more of the shares in the portfolio are classified according to a number of factors and can be fully automated from the perspective of both analysis and execution. Machine Learning Algorithm Based – In simple terms, the use of historical data and feeding this market for machine learning algorithms that they have been designed. the data is divided into data training data and testing. Machine learning algorithms to learn patterns and features of the training data and trains itself to take a decision as to identify, classify or predict new data or results. algorithms continue to learn from the positive/negative, to improve accuracy and performance. Order-To-Trade Ratios Help Monitor The Market The ratio of order-to-trade is the ratio of the number of orders sent to the exchange, with the number of orders that can be traded. A ratio of 2: 1 would indicate that only half of the total orders received are traded and the rest remain pending or to be canceled/rejected. The significance of this ratio is the fact that the exchange punishes a company with a high frame rate trade as one might weigh on the exchange infrastructure by sending commands that are not expected, or worse, not intended for trading. Indian exchanges enforce penalties on companies that have a ratio of order-to-trade high for orders that prices outside the trading price range mentioned. Development Of Strategies And Research Tools With the advent of online research tools, many traders are increasingly looking out for online resources and backtesting platform in an effort to enhance the trading models and strategies. The latest automated trading platform like SGT Markets been granted access to market data vendors, and also a platform to build and evaluate their algorithmic trading strategies using statistical and computational power. They also use several types of Forex trading signals in order to become more successful because these days every trader uses Forex signals. In the end, algo trading has brought a new era to online trading. Though it’s not 100% dependable but if you stay vigilant then you can profit consistently from this technology.

At present, we live in the era of technology. Technology has absolutely changed our way of life as well as our thinking. Now we are doing the things that were nearly impossible a decade ago. Online trading has increased in recent times because of advanced technology. Just like normal trading, automated trading involves creating, buying and selling orders. This command is computer generated and transferred automatically to the center of the market or trading center. The command generated by a computer program that is part of an algorithm. There are several factors to consider when trading online. If you can utilize it in the proper way then it’s definitely a BOOM for all the online traders. And especially now it’s the best moment for using automated trading platforms or trading robots whatever you might call them. Because now technology is at it’s highest peak. Besides, there are also several factors that you need to give attention like what are the things that you should do or you shouldn’t do in Automated trading. Therefore, I’ve collected a few information on this aspect regarding my point of view. Here are the DEETS…. DO’S in Automated Trading Make premarket preparation — Every successful trader must make checks to keep market trends before making a sale or purchase order. The market may change from time to time and the trader must check the right order before making or buying them. The liquidity ratio and very significant volatility during trading. Keep updating your computer’s software as well. You also need to check out the Forex exchange rates to ensure the right amount to trade with. Before you start trading on comparing the 5 best Forex robot you can venture into the market. 2. Make a good game plan for the upcoming season — As a trader, you must have a good strategy. This strategy will involve looking at risks that may arise in the market. Be careful about the risks involved and minimize them. Take opportunities in the marketplace and maximize them. This is called a market survey. Many online traders fail during trading because they do not survey the market correctly. You must be a breakdown of the technical potential in and out of the command to increase your success in the trading period. 3. Make sure you make the evaluation of post-market performance — Knowing how you’ve done in the market will help you make good decisions in the future. Taking inventory evaluation after a certain trading period is crucial for the success of any trader. Every trader should make sure that they evaluate their potential in the market and ensure that they grow. 4. Trade what you can lose — In any trade, people are advised to trade what they are prepared to lose. Online trading is like trading Forex and you have to learn the trends, the trick to being successful. Starting from small is very important because it will give you time to learn. $ 10 could be a good start. DON’TS on Automated Trading Avoid Emotional Trading — Same as Forex trading, trading Crypto doesn’t need emotion. If you have realized that you can not make a profit trading period just let go. If you continue trading with emotion, you will end up losing all the money you have. The best thing to do is to stop trading. 2. Do not lose respect for money — Sometimes traders found themselves out of respect for the dollar while trading. This will make the traders to get more losses. Just like I said before, it is important that you start small, trade with money that you are prepared to lose but it is not respectful to lose money. When traders forget the real value of the dollar, they may take unnecessary risks that can cause harm. 3. Do not be contented — The Human mind is packaged in a very funny way. It will be used for things and make money or lose money in the market is no exception. Avoid getting used to trading to extend where losing your money is not a problem for you. In the end, if you have set up your mind that you’ll use automated trading then you should know that there are certain risks that you’ll have to face in your automated trading career. So, always keep that in mind and make the proper use of technology. If you do that then I think you’ll get promising results. GOOD LUCK!

When it comes to investing, most people look to make a number of targets and then spend it on things that do not yield results, such as holidays or property. Naturally, these awards are nice, but only a small percentage seems to realize that the investment is a passive income opportunity to close - and see it grow over time. If that sounds appealing, Forex trading can be for you. Although the long-established market, Forex requires a piece of comprehensive financial knowledge and a deep understanding of how trading works. If you're just getting started, here are four tips that can significantly improve your chances of making a breakthrough in Forex. 1. Create an investment plan and stick to it. Before you actually make your first trade, it is recommended that you take the time to think and make the action for yourself. First of all, you'll need to set the amount of money you want to initially invest, then you can make a trading cap for every purchase of more in each trade. By starting small and with a clear plan in mind, and the numbers were written, it will be easier for you to avoid absorbed into the vortex of emotions with each currency pair you are trading on the line. You'll know exactly what your spending limit and what you can not go over, so help you keep away from unnecessary risks and inner turmoil. 2. Know your risk tolerance and calculation Before you jump into Forex trading, you need to honestly assess what is your tolerance for risk. The appeal of making profits suddenly are naturally high, which is why most people do not take the time to consider how the risk of losing the money would affect them. Forex trading is a journey that will face the risk in every nook and money loss definitely a constant possibility. Before every trading opportunity you seize, you'll need to calculate your potential losses, in terms of both the percentage and the amount of the actual currency. In fact, it is often recommended that you focus on the money you will actually lose, not in percentage, since the latter hold emotional value and it's a little more conducive to take blind risks. If you're not sure where you stand, Forex trading websites like TopAsiaFX can help you clarify the needs and strategies you can build. 3. Keep your emotions under control This is probably the best gift you can offer yourself when you go to trade. Before digging Forex trading, you need to realize that it is a process that is much like an emotional rollercoaster, where anger, fear, greed, and euphoria can all go hand in hand, sometimes even within the same day. Secret in Forex trading is to not get involved with emotions and keep a clear mind as often as possible. You will need to look at every trading opportunity objectively and decide if it really is the right investment for your strategy. For this purpose, the emotions may represent the biggest obstacle in Forex trading, stop you from making a reasonable decision that is intended to best serve your financial interests. If you can't get a hold on your emotions after trying a lot then you should take trading software to make the decisions. In other words, you should use automated trading. 4. Choose your broker wisely Having a broker can make or break your Forex trading game - this is why it is so important to do extensive research before you settle on one. First and foremost, you'll need to understand what kind of investor you are, and what the goals and expectations you have when it comes to Forex trading. As soon as you get clarity on this, you will need to consider three aspects when it comes to choosing your broker: the level of security they provide, regulation and their transaction commissions. Having said this, when making an investment budget for yourself, you also have to set aside the amount you want to spend on transaction costs. Neglecting to do this will only set you up for the increase in frustration down the line. All in all, Forex trading could eventually become a beautiful and thrilling journey to embark on, as long as you establish some ground rules for yourself from scratch. The arrangement with the clear intention and action plan will only improve your chances of becoming a Forex trader successful, who control their emotions, have the financial management skills needed to make the right decisions and know yourself well enough to understand what the needs of their trade are, In the end, the mindset of the keys that will make you successful in Forex trading is not getting rich overnight, but to really get consistent profits, while registering losses to a minimum.

First of all, what is the auto-trading software? Auto-trading software is traded software automatically: traders set the parameters, but then does not intervene in the operation of the program. These programs are also known, for obvious reasons, like a “robot.” First, the software collects market data from feeds that are as “real-time” as a regulator of the market will allow. Then, analyze this data to create a signal (an indicator of market trends), which triggers the selection and execution of trades. This happens almost instantly and with total accuracy, within pre-set parameters: when the honest intent of this software, the trader wishes to do. Effective Trading Systems If you are familiar with the stock market trading or Forex trading, you will be familiar with the trading systems available in the Option Robot. They are long-established and tested well in the markets, as well as in binary options trading. The challenge lies in applying the system – unless you use the Option Robot. This is because the team at Option Robot gives you the tools to take advantage of three of the most popular trading system that is being used. By using one or some combination of these systems, you can control your exposure to risk, and manage your investments. Classic Trading Systems It is a popular choice among many traders because of its simplicity and because it is a safe way to manage risk. Of course, there are risks involved, as there is with any type of trading or investment activities. Risk mitigation is key, and that’s what the classic trading system. It works by maintaining a constant value of each trade, unlike other systems that differ depending on whether the value of trade between the previous trading wins or loses. When you use the classic trading system, all your trades are stored at a constant value. Martingale system This is a high-risk strategy and high-reward. It is based on the principle that as long as you use a reasonable method to choose which trades to make, one of them will eventually become a winner. Nothing happens with the system when you put a winning trade – you place your next trade is the same value. If you lose a trade, however, the amount invested in the next trade is two-fold. If trade were also lost, the next trade is doubled again. This continues until you hit a winning trade and recover some of the losses that you make. Why is a high risk strategy? Because there is no way to predict how long a losing streak as possible. Each merchant passes the losing streaks, and if you find one that is long, you will need a great balance to not go bankrupt. Fibonacci Trading System Fibonacci trading system based on the Fibonacci sequence of numbers. It’s quite complicated mathematical and trade rules, but they were able to understand the concept and apply it effectively can use it to produce good results. Like the Martingale system, there is a basic value for every trade. If you win the trade, the next trade is placed on the base value. The trading system kicks every time you have a losing trade. Basically, it follows the Fibonacci sequence of numbers: if the next number in the sequence is five, for example, the amount invested in the next trade is five times the value of your basic trading. This ensures recouped losses and help you make a profit but carry risks similar to the Martingale system, that is, if you go on a long losing streak you can easily run out of money. Option Robot Features The demo account One of the best features of an Option Robot for those who are new to the platform is the fact that it offers a demo account. This is a fully functional account that has full access to the trading platform, and all the tools and features available. You can monitor the assets, try trading systems and trading places. The big difference between the full account and a demo account, however, is that you use cash instead of your own money stuffed. Obviously, it means you do not get any benefit if trade win but, equally, you do not lose anything if the trading loss. It allows you to test the platform without risking your own money. For these reasons, the demo account which is popular with traders both new and more experienced who want to try out the features of the new trading platform before making a real investment. There is one thing you should be aware of when creating an account Robot demo of your choice: You must register with Option Robot and open an account with one of their affiliated brokers. You do not need to make a deposit, but some people are cautious even so about signing up with a broker. That said, considering there is no need to deposit money this requirement should not present too many restrictions. Customer service The first place you should look if you have any questions about Option Robot or your account is part of the FAQ. It is detailed and informative and has answers to many frequently asked questions. If you do not find the information you need, you only have one other option – to call the customer service team via email. This email address [email protected]. Robot selection is not committed to the query response time, just say that you will get a reply soon. Tutorials and Learning Many of the leading trading binary options platforms offers a variety of tutorials and learning materials to help merchants familiarize themselves with the system, and to teach them about binary options trading types of educational materials including video tutorials, how-to guides, eBooks, and learning modules. Unfortunately, Option Robot has none of these things. Actually, Option Robot does not have to provide them. After all, it is the trading platform, not a broker, and it is the broker who usually provides training materials. In the real world, however, most of the trading platform is better not to invest in these materials to help their users. In Option Robot, you can check out the blog, though not always up-to-date. You can also read our FAQ section; However, you should turn to Google for answers to most of your learning questions. Advantages and Disadvantages of Option Robot Advantages A website built – binary options market trading include everything from cowboy operators to multinational corporations. As a result, you get a complete range of websites, from very good to very bad. Robot selection is very good at the end of the scale. To start, do not use stock images of smiling people who are pretending to be a successful user – dishonest tactics are never a good sign. In addition, the website is intuitive and easy to use, while also being well laid-out with an attractive design. Honesty – in a sense, this follows on from the last point. Honesty is an important element in the binary options trading platform is good, but that is all too rare. Usually, what you find is a platform that promises riches a few hundred (or even thousands) every day. That is, of course, is not true, and anyone who has been involved in binary options trading at any level will know this. Those platforms that use this marketing strategy continues to make promises, however, in an effort to lure new customers. Robot selection of the chorus, which is a welcome departure from the norm. Instead, it makes the focus on how traders can use their platform to successfully implement a trading system. Customization information – this feature is somewhat unusual for a binary options trading industry: not many platforms provide much information about how their systems can be adapted or adjusted. Option Robot, which makes it easier for you to implement strategies that have been developed. Internet and web-based – binary options trading platform that charge money just to access the software they ring alarm bells. They often do this because the software must be downloaded and installed locally on your computer. Most traders do not like any of these things, that is, not the fact they have to pay for the software as well as the fact they have to install anything on their computers. Robot free choice, plus it is web-based, so there is nothing to download and install. You need to use the internet access system and a device – phone or computer. One drawback to this is that you can not access the Option Robot if you’re offline. In that state, competitors such as Binary Option Robots, which can be accessed offline, will have the edge. However, most people always have an internet connection, so this should not be a big problem. High-quality brokerage – trade binary options successfully require a number of different elements. This includes a good trading platform and an effective strategy. Another important element, however, is a good broker. A broker that you can use with Option Robot all of the high quality and is recognized throughout the industry. Disadvantages Including weakness – before you invest time and money in it the best that you know a lot about binary options trading platform it probably is. Robot weakness Options are: It does not have a track record – Option Robot offers a number of innovative features, including an impressive signal that it generates. This has created a lot of interest in the binary options trading industry, and many people pay attention to what Option Robot doing. That said, short track record against its competitors in the market. This is simply because they have not been around for, but it remains a fact that the success of the claim could not be verified to detail and time-tested record together with other trading platforms. This is not always an indicator of poor quality, but it is something that you should consider. Only one asset available – the only asset that you can trade in Option Robot is a currency pair. He has decided to focus on one niche in an effort to become an expert trading platform for certain types of assets. This is a risky strategy, as most traders like having the option to choose the asset type and include a variety of different assets in their trading strategy include indices, stocks, and commodities and currency pairs. Maybe pay for Option Robot but be frustrated if you want to expand the range of assets that you trade. You must open a new brokerage account – as described above, the process of getting set up with Option Robot involves registering an account with the trading platform and one of the brokers they are approved. What if you already have some experience with binary options trading, however, and already have an account with one of the brokers offer? Unfortunately, you will not be able to use it. Instead, you must re-register with a broker and open a new account. This is a method of operation that only affects merchants with accounts (eg, those new to binary options trading will not be affected), but rarely popular. This lack of transparency – most binary options trading platforms provide clear information about who owns the system and develop a platform. None of this information is available in Option Robot. That means we do not know who they were, or where the platform came from. That would be a concern of many people. Conclusion Robot selection is not perfect by any means, and we have outlined a few areas where it could do better. It does not deal-breakers, though, and can be solved with In general, this is not an easy market for traders to operate. These difficulties are amplified if you are a new trader in the industry and try to find your way. The number of scams out there is confusing, even for the big players. Binary options brokers used to be the biggest risk for the trader, as witnessed by the number of complaints that flooded a website like ours, and for regulatory bodies around the world. Trying to navigate through a broker dodgy at times it was almost impossible. However, regulators stepped in and now a better picture. Of course, there are still brokers scams out there, but they are not common because they are in the past. The spotlights are often displayed on the broker by websites like this, so it is becoming increasingly difficult for them to operate. Which lead to other problems, however, as scammers simply shifted their focus from binary options broker for automated trading platform. Regulatory position in this market is far less clear. In fact, no single jurisdiction in the world that can be described as having adequate regulation. That leaves it to sites like us to investigate and analyze the platform has to offer, to explain to the merchant exactly what to expect from a particular provider, and what the potential risks.

Have you ever wondered how you can automate your trading strategies and increase your trading profits? Various types of technical analysis are to look at the indicators for signal and business based on the signals. I believe that “Behavior that puts great traders above the rest,” you should be noting all transactions in your trading journal, and you gain more experience, you should be able to identify configurations that you make the most money. What if you can program a computer to automatically identify these configurations and enter trades automatically? What if you can free yourself from the tyranny of the charts? You got me. Haters will say it can not be done, but they are wrong. It can be done. The amount of available financial data is amazing. You can get the price directly from exchanges via their most cryptocurrency interface application program (API), and, as expected, it’s just a bunch of numbers. Unsurprisingly, computers are much, much, much better than humans do the math. If you can identify configurations that make you the most money, so a computer can. We are talking about technical analysis, fundamental analysis not, which is a whole other kettle of fish. A guy I keep hitting about Ed Seykota, had a pretty good race in the 70 and 80. He pioneered trading systems and accumulated earnings 250 000% over a 16 year period in its model account. And yes, it is the correct number of zeros. This kind of earnings are unknown today. With the advent of computerization of transactions, it has had very little competition. The gains were eroded, but you can always do an excellent performance of automated trading systems. Technical analysis is the study of maps. View AT price search patterns and use indicators to determine market conditions. A flag is just a mathematical function on the price and / or volume of an asset. And a model is just a price arrangement over. This means a technical trading strategy boils down to numerical analysis and mathematical problems. Computers are much faster and more accurate than humans in solving math problems, so why not tell your computer what the rules are and let it trade for you? What is an algorithm? The dictionary definition of “algorithm” is: “A process or set of rules to be followed in calculations or other problem-solving operations, in particular by a computer. “ This sounds very similar to a technical trading strategy. You find a setup that works for you (eg MACD fast line crosses the slow line from bottom to top), and you decide what you will do about it (for example, place an order on the purchasing market, with a stop loss below 1% in the last level of support, and closing the trade when MACD lines intersect again). Here is a simple example, and it is all digital. If you can identify the situations in which you need to open a position, where you have to close a position, you can tell a computer to do the same. It will be faster and more accurate (assuming you are told to do the right thing!). The advantage becomes clearer if we look at a more advanced example. Suppose you want to combine 5 indicators and analyze a basket of 7 different assets for commercial entrance. That’s a lot of information that the human mind to handle. You will be going back and forth between screens to research your indicator to light in green and tell you to enter the market. The possibility of making a mistake is amplified when your attention is divided into several markets. This is when a computer is shining. The ability of a computer to manage the assets and multiple indicators is much higher than that of all of us. Computers still have their limitations, but even a basic laptop PC may exceed any human being when it comes quickly and analysis of accurate data. I hear some of you saying, “Yes, but I can set alarms and signals to tell me when the market conditions are right! “ You can. And how do you think the work of alarms and signals? They are algorithms. It is a step removed from algorithmic trading because the alarms just have to tell you when the market is in a certain state, they do not handle orders or anything like that. This part depends on you. What is really the easiest part of the operation? Why not get an algorithm to do all this? It is cheaper than hiring an assistant. In addition to general trade automatically, there are some specific uses for automated trading, including: High-Frequency Trading (HFT) Arbitrage scalping reducing transaction costs HFT group execute large volume transactions with high speed, hence the name, “high frequency”. In 2008, after the collapse of Lehman Brothers, there is great concern about the liquidity in the stock market. NYSE decided to do something about it in 2016. They introduced a new incentive for the market makers, attract groups to provide liquidity in the market by offering rebates averaging $ 0.0019 to trade at NYSE- and NYSE MKT-listed securities. It does not sound like a huge incentive, but if you make millions of trades every day, rebates start adding. How could the man possibly make millions of transactions a day? And millions of profitable trading it! They can not. Enter, automated trading systems. By introducing rebates, incentives NYSE HFTs use, entities that can make trading decisions in microseconds, and were rewarded for it. Some see it as unethical because HFTs have greater profit non-HFTs. They did, but that just means the rest of the market needs to adapt to the new players. Adapt or die. The market is constantly changing, this is just one of the changes. The world has become computerized, and there will always be people who stand in the way of progress, because what “progress” for others really hurt these people in the short term. So it is understandable that people would be annoyed by HFTs. But advances progress. Work that can be automated will be automated. We need to deal with the fact that. Do not worry, we’re going to dive into a discussion about automation and the future of humanity today. Let us return to automated trading. Another special use of the automated trading system is to arbitrate. Arbitration is the simultaneous buying and selling of the same assets in two different markets, the prices are out of sync. For example, now BTCUSD Kraken trading at 7281.50, and 7294.10 on Bitfinex. The difference is 12.60. If you can buy and sell BTC to the Kraken in Bitfinex, you can create a 12.60 per BTC, no questions asked. This is seen as a “risk-free” as you buy and sell the same assets since this price must be met eventually. I say “should” because this may not always be the case. This price difference may not last long, because there are other vendors out there watching the price, and hope to take advantage of the spread as well. So, you have to be quick. And what better way to trade faster than a computer program to do it! Arbitration bots that seem simple, but is becoming more complex. There are many different problems that you normally would not find in other types of trade, such as the speed of execution. This becomes a problem because of the difference in price will not last long before other arbitration capitalizes on the difference. So the fastest finger first. Some trade groups resort to “co-location”. This is where the trading company trading algorithms are hosted on servers in the same building as the exchange server so that they can be directly connected with fiber optic cables. When many trading companies doing this, data center providing fair conditions for all groups using exactly the same length of fiber optic cable to connect the server each trade group for the exchange server. It will come down to the level of detail, it’s how high competition in this space! Scalping is another application. This involves entering a trade and close them after a short time to make a profit from small price changes. If you watch the graph for any liquid assets, even 10 cryptocurrencies, you’ll see prices move constantly. Touts the advantages of this movement. In the same vein to HFTs, brokers make money on the scale. If you make $ 0.10 per trade, you need a lot of Helluva trade to make significant gains. But with algorithmic brokers, you can do it. scalping demands rapid decision-making, something that computers are better suited to than us humans. Work on the short term and create short-term trading is something that requires speed and precision of computers. Short time frame also helps to limit the risk exposure for brokers, as they are only exposed to market movements for a very short period of time. They do not have to worry about large swings in price because they are only in the market for a few minutes at a time. Smaller profit per trade is also much easier to get. It’s more likely that the market will move in the same direction 0.10 from 1.00 in the given time-frame. This makes it easier for brokers to make a profit on every trade. This move more often, so brokers can make money even when the market is relatively quiet. Some may look down on scalping as a lower form of trade, but at the end of the day, it is a way to make money in the market. Perhaps you are better suited for scalping from the technical or fundamental analysis? If so, that’s good. The aim of the game is to make money, not to be the smartest person in the market, or even the most skilled. The last type of automated trading that we will discuss here is the reduction of transaction costs. The algorithm used to split large orders in to smaller ones, and then insert them into the market from time to time to get the best price. large orders can move the market, so large institutional investors will use an automated system to cut their orders into bite-sized pieces that can be absorbed by the market without affecting the price too much, if at all. It is less exciting use of the algorithm in the trade, but it is necessary, and it’s another example of a much better job is done by a computer rather than a human. In the early days of Ed Seykota, he programmed trading algorithms into a punch card that is read by a computer! Luckily trading technology has come a long way since then. Now anyone with basic programming skills can set up a trading algorithm. If you have a trading system, whether based on the signal indicator, pure price action, or other technical analysis, you can write a short script to monitor the indicators that you choose and act on them. If you do not have programming skills, then contract out the work on platforms like oDesk. There are a few around the trading platform that allows you to write your own trading algorithms, and integrate it with their infrastructure. You do not have to worry about connecting to exchange API, how to calculate profit and loss, or even how to run the command. This system has solved all these problems so that you can work on a high-value aspect of your trading operations, the algorithm itself. Some of the platforms include: The catalyst (my preferred platform) HAASONLINE Gekko Trading View Quantopian (non-crypto) Quantopian does not support cryptocurrencies, but I think I’ll add it in because it was the most advanced of all these systems. Catalysts branched from the underlying technology Quantopian, but different because they focus exclusively on cryptocurrencies. This system I use now. Both are written in Python. I have not tried HAASONLINE, therefore, paid services, but I think I will add it to show what other kinds of solutions are available now. And Gekko is an alternative that is written in Javascript. I do not think it’s as polished as Catalyst, but it does give some good features. One thing Catalyst, Gekko, and Trading View have in common is backtesting. Both systems allow you to download the historical price data from exchanges, and test your algorithms over a period of time in the past. It’s good to develop algorithms and hone it. At Catalyst, depending on the pair you want to test against, you can trade from March 2015 until yesterday and every period between. You can backtest as many times as you like, without the risk of money, until you are satisfied with the results. Trading View has a very simple scripting language called Pine, which you can use even if you have no experience in programming. It’s very easy and can be your gateway into automated trading. Realize, too much can cause your backtesting to over-fit your strategy to historical data. It is the algorithm can work perfectly for the price action from Jun 2017 to December 2017, you get a 3000% (Woah!) But it just might work for a period of time. market conditions are constantly changing, so you can not rely on back-testing to give a perfect algorithm. A strategy I tried out now to hone my algorithm is to use a Monte Carlo simulator to generate a random price for the next year, then the hose in Catalyst, and run my algorithm to the data-set. In this way, I can test my algorithm on an unlimited number of possible future scenarios. So, what is your prespective on getting profitable with automated trading?