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Everything You Need To Know About Algo Trading

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With growing technology, the way we work, transact, or communicate has completely transformed. Technology has not only changed the life of a common man, but also the overall functioning of the financial market. According to recent research, more than 60% of volumes are traded with the help of Algo trading in the Indian stock market. So, what is this Algo trading?  How should one go about it? Let’s explore more about Algo trading. 


What is Algo Trading?

Trading refers to buying and selling of securities. When we add ‘Algo’ to the trading, it simply means the use of various algorithms in trading. An algorithm means a set of rules followed to solve critical problems. This Algorithm trading or Algo trading involves programming codes to build and implement trading strategies. 


Algo trading is much faster and helps in an accurate analysis compared to manual trading as you insert the trading login into the machine. This machine evaluates different opportunities depending on the live market and suggests trading decisions. Since it is machine-based, there are no human emotions involved in the decision-making, thereby reducing the possibility of risks based on emotions.  


Why should you choose Algo Trading? 

Algo trading is an efficient tool in constructing the right trading model to deal with complicated trades in the market. Below are the various advantages that you should take a look at. 


Speed 

Since computer technology is utilized to perform trades, it is tremendously fast and avoids the problem of spillage that usually occurs while manual trading stocks. 


Accuracy 

The best part about Algo trading is that it avoids human errors that can be a result of manual trading. The entire process done by the computer ensures maximum accuracy. 


Discipline 

As trading emotions are not a part of the Algo trading decision-making, it brings in a high level of discipline while trading. 


Backtesting 

Its biggest advantage is that it systematically trades in the stock market which enables the possibility of more comprehensive performance of backtesting. 


How to start Algo Trading?

If you don’t have the knowledge of Algo trading, you should start by building three basic skills that are quantitative skills, trading skills, and financial computing skills. You should be able to build better trading strategies along with basic knowledge of how the financial market works and what affects it. Finally, computing skills are a must to successfully implement the Algo trading strategies that you have come up with based on the first two skills. There are various Algo trading platforms where you can start your trading journey. These trading platforms offer you modern solutions to your Algo trading questions. 


Hem Securities is the best Algo trading platform in India. It offers modern and high-end Algo trading solutions to its clients. Algo trading can be done right if you choose the best and Hem Securities is the most ideal trading platform. You get customized creation of trading strategies with the help of top technology and low latency facilities which is why it is known to be the best Algo trading platform in India. They offer many other services besides Algo trading that you must take a look at. You will find all the information about their products and services on their website, so go check out today.

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