Algorithmic Trading (Algo) - futures io
futures io


Algorithmic Trading

Algo
Algorithmic trading (also automated trading, black-box or alo trading) is trading executed by a computer. It rules out all human aspects (fear, greed, fatigue) and can do the job on many instruments in parallel, much faster than a human being.

The trades generated by algorithmic trading are systemic and under 2 identical situations roughly the same results will be obtained (in the case of a trader this is not the case, as he might be distracted or working on something else).

There are as many different implementations of algorithmic trading as you can think of different algorithms.
There are however a few distinct types :
  • based on speed (HFT)
  • arbitrage (taking advantage of market inefficiencies)
  • trend following
  • using sophisticated proprietary mathematical methods



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.