Hi, Would I be correct in assuming that algo (automated) trading is applicable to a trading strategy whereby someone wants to trade on a very small timescale and place many trades very quickly?
I don’t really see the point on automating trades if you work off a daily+ time frame and not applying many trades or have I missed something obvious
it doesn’t have to be that, but that’s one example
you’re thinking of what’s often called “high frequency trading,” used by some financial institutions - and that is an example of “algo trading” but there are many others, too, all the way down (and “down” is the right word) to “expert advisors” for retail forex traders
i agree
Thanks for explaining in detail. First of all I couldn’t understand actually what does this algo trading mean.
after developing a trading platform the result of trading can be useless if there is no perfect money management.
to build a powerful money management is a long time approach , for that reason traders lost interest after passing sometime especially the beginners.
My perspective in Algo Trading as complementary method for trader to take market opportunities. There are times we are not available, by having an auto-trading system will be beneficial.
There were time I was sick, algo trading became my source of income. Until now, I’m using algo trading a lot, complementary to my discretionary trading.
Having algo trading, we can target specific zones that are profitable but can’t be done by our main trading strategy.
So the way to develop an algo trading by keep analyzing the market, identify good trading pattern and add in our trading system. The result can be quite powerful.
As a human we have limit to monitor market, but with a system, we can monitor as many as we want. The only thing we need to monitor is the money management.