Algo Trading: The Good, Great and Awesome
Algo trading also known as algorithmic trading or automated investing is still in the infancy stage in terms of the masses using them for managing investment capital.
Is Algo Trading Your Investment Capital A Novelty At This Stage Of The Game?
The short answer is – Yes. While algo trading has been around for many years, the process to design, build, and test required a high level of programming skills and/or excessive capital to have these built and managed. With AlgoTrades running live in your brokerage account, you are one of a small group of individuals who can take advantage of this type of investing.
You have likely noticed that “algo trading” in the media has been getting some negative publicity because of the recent rise of High-Frequency Algorithmic Trading. Many think algo trading is new and trendy (and controversial) about how they affect the financial markets.
But algo trading is not necessarily overly complex and sophisticated as one may think, not compared to the HFT systems.
As Merriam-Webster defines it, an algorithm is nothing more than:
“a step-by-step procedure for solving a problem
or accomplishing some end, especially by a computer”
Algo Trading example: a traffic light could be operated based on a fairly straightforward algorithm that cycles through the colors in a predetermined sequence and time interval. This is similar to how a trading system can have a series of rules for entry and exit signals.
In practice, algo trading systems are obviously more complex. Still, in reality, it’s as if you were to write down your investing strategy rules on how your find, time, enter, and manage positions, then convert it to a computer code that says do this, that, and the other through a series of “if,” “greater than,” “less than,” or “equal to” statements. Let’s be honest here, who would not want a winning investing strategy automatically traded in their brokerage account so you can spend time doing more exciting things in your life.
Where Do I Fine An Algo Trading Company For My Investment Capital?
At AlgoTrades, we have already completely automated our investment strategy’s execution process, which generates the raw trading signals, through to order execution, and position management to it trades live in your investment account.
All signals generated by the AlgoTrades System are published via email and SMS text messaging to our clients for complete transparency. However, we allow the traders a degree of freedom around these positions, which we call “manual trade intervention.”
What this means is that at any time, you are able to log in to your account and close out any position manually if you are unhappy with the performance of a position or want to lock in profits early. While we recommend not altering our algo trading positions, you still have full access to do what you please, and our system will automatically know you closed part or all a position and continue to operate without missing a beat.
We have honed our execution-style and algo trading service to focus on risk management and performance. Making money in all market conditions (up, down, or sideways) is the secret to success.
Also, in the near future, we will be adding a new algo trading strategy that will take advantage of extreme intraday price swings, which occurs 1-3 times per week. This will boost monthly performance, thus smoothing the equity curve more.
ALGOTRADES – AN ALGO TRADING SYSTEM FOR INDIVIDUAL INVESTORS!
Chris Vermeulen
www.AlgoTrades.net
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