Algo Trading – A New Paradigm in The Stock Trading

Abstract

Algorithmic Trading (AT) is the most popular trading pattern, to identify trends and movements in a particular direction. Algo trading is widely adopted across all global markets. It is a computerized rule-based process, eliminating human intervention and large orders are placed in the market, as per set rules. The algorithms scan the entire spectrum of the chosen area and compute the decision based on multiple indicators, with high speed and precision. Multiple Algorithms are available, based on vendor/ broker preference for specific goals. As the trading activity is getting complex with the fast pace of market moves and escalating volumes, with greater volatility, data coupled with artificial intelligence is providing cutting edge to Algo Trading, for spotting and predicting the trends with matching speed, to tilt trading activity in favour of the trader.