• 1 Algorithmic trading
  • 2 Strategy back-testing
  • 2 Strategy creating
  • 3 Strategy launching

Algorithmic trading

General information

Algorithmic trading is the formalized process of using special computer systems (trading robots) designed to follow a defined set of instructions – users’ algorithms.

Trading robots are quite popular among institutional investors when a big order needs to be done. Also private traders and hedge funds use the robots to get profit from their speculations. The share of algorithmic trading is up to 70% of the total volume of the U.S. stock market.

The main goal of a speculative strategy is to generate profits from volatility of stock prices at the speed which is impossible for a human trader.