Benefits of ALGO TRADING
The benefits of algo trading exist for everyone; including the layman investor,
a professional trader or a financial institution.
Algorithmic trading automates the trading function which is incredibly advantageous
to traders, which makes sure that the trades are carried out at the right time during
optimal market conditions which increases the chances of high returns. The traders
do not face the risk of missing out on important opportunities in the market.
Every active trader loses money to manual errors like punching wrong order quantity,
wrong order price or sending the order in the wrong scrip. Algo platform minimizes
Another key advantage of algorithmic trading is that it removes human emotion from
the trading equation as the trades are defined by preset conditions. This is advantageous
because human emotions can cause investors to make irrational decisions based on
fear and greed.
With fully automated systems, there’s no need for teams of analysts to monitor price
action or market news. You could run multiple strategies, each consuming all the
market data it needs to make optimized decisions. This frees you up to discover
new markets and new strategies that can diversify your portfolios.
One of the biggest advantages of using machines for trading is the fact that it
makes things systematic, hence enabling the possibility to perform backtesting more
Trader’s emotions are eliminated in algorithmic trading as the decision making occurs
according to the trading algorithm, bringing in a higher level of discipline in
Automated trading platform permits the user to trade multiple accounts or various
strategies at one time. This has the potential to spread risk over various instruments
while creating a hedge against losing positions. What would be incredibly challenging
for a human to accomplish is efficiently executed by a computer in a matter of milliseconds.
The computer is able to scan for trading opportunities across a range of markets,
generate orders and monitor trades.
Due to the use of computers and technology to implement trades, the execution speed
is increased tremendously which helps avoid slippage, which is the difference between
the market price at the time when the order was placed and the price at which the
trade actually gets executed.
Why Invest with FINDOC?
- State of art Infrastructure
- Dedicated Algo development and support desk.
- Ensure a transparent approach to clients.
- Best software / application platforms available.
- Access to extensive research.
- Large investment selection.