Algorithmic trading uses computer codes and chart analysis to enter and exit trades according to set parameters such as price movements or volatility levels. Once the current market conditions match any predetermined criteria, trading algorithms can execute a buy or sell order on your behalf.
With Angel Algo we will one day be automated but as of now we want to have people learn how to work with Algorithms, using them as a tool for trading can be a game changer I think over time the whole market will move with them, A study show‘s that 75% of trades taken now are automated.
Algorithmic trading is very special it has brought a new era to online trading. Though it’s not 100% dependable but if you stay vigilant then you can profit consistently from this technology. There are more automated trading robots than ever before being used by both institutional and retail traders, these robots follow pre-defined patterns that have been set by the human traders, a typical example would be where a robot would open a long position when a stochastic RSI indicator is oversold, common trade patterns like this are built into an untold number of algorithms. These days the price reversals are directly influenced by these trading robots that are all running at the same time.
Remember that there is no such thing as an automated trading system that will simply print money for you, what might work this month may not work the next, the markets change in cycles and you have unpredictable events that happen out of the blue. As an algorithmic trader, you will need to try and counter these events with hard logic in your trading system.