What is algorithmic trading?
People hear the phrase algorithmic trading and they think it's something new when in fact trading with an algorithm just means trading by a set of rules.
Here's an example of what a simple trading rule to identify potential buy opportunities on rising stocks might be:
'I will buy 100 shares of Company X when the 50-day SMA crosses over the 200-day SMA.'
Conversely, a simple trading rule to identify potential sell opportunities on falling stocks might be:
'I will sell 100 shares of Company Y when the 50-day SMA crosses under the 200-day SMA.'
*SMA refers to the Simple Moving Average
Both of the transactions are being transacted by a set of simple rules.
As good traders you know that a clear set of rules is important.
Rules enable you to:
Set a strategy and run with it.
Objectively review your strategy and amend as appropriate.
Remove the psychology and emotional aspect of trading.
What algorithmic trading does is just embed rules into software run on computers.
Up until the last few years...
...the cost of computer power and internet connectivity needed to algo trade was prohibitive for private traders. These systems were the preserve of the Central Banks, Investment Banks, Hedge Funds, and the super-rich.
Now the game has changed!
Using a good PC and high-speed broadband the world of algorithmic trading is now available to any private trader.
A good algorithmic system will enable you to
- Set a clear strategy
- Watch and learn what it does
- Allow you to replay and simulate live trades
- Manually trade and switch to auto trading if/when you feel confident
At Inteligex, we believe that simple algorithms are no longer good enough so we have combined AI (Artificial Learning) with our software to give you the singals to either buy or sell.
Our algorithms can instantly react to market changes and because they have learnt from decades worth of historic data they can also predict the way a market is going to move.
We don't guarantee success (and don't believe anybody who does!) but once you've tried our core algorithms we know you'll see how they improve your chances of trading successfully,
We're on a journey to ensure that private traders like you have access to the best tools possible in order to trade profitably no matter what the market is doing. We'd love for you to join us and other like-minded traders on this journey.