Algorithmic Trading often refer to as Algo Trading is a method of executing order
using automated pre – programmed trading instruction accounting for multiple variables
such as time, price etc. This type of trading attempts to leverage the speed and
computational resources of computers and reducing the need for a human trader’s
intervention is minimized and thus the decision making is very quick. This enables
the system to take advantage of any profit making opportunities arising in the market
much before a human trader can even spot them.
Examples of some of the common trading strategies used in algo-trading are High
Frequency Trading, Arbitrage Opportunities, trading range etc.
Advantages of Algo-trading
- There is no time lag, as soon as the signal gets generated, the order gets executed.
- Manual transactions take time as first trigger/signal is received, and then brokerage
account is opened to enter the order.
- Human emotions are not involved. Hence, removing last moment dilemma and time lag.
- Retail investors may avoid booking the loss due to the phenomenon called loss aversion.
- Positions can be scaled up, if a profit is made on previous trade, a percentage
of it can be deployed in the next trade. Thus, even position sizing can be automated.
SO WHY CHOOSE ACHINTYA?
We at Achintya provides a basket of Algo – Trading software which are already pre-approved
by major exchanges like NSE, BSE and MCX further we also provide Co-location facility
which reduces the latency and improves the response time which provides an edge
to us against many of our competitor, further we have a dedicated technical team
of professional who continues their research to keep us on edge over others.