Algorithmic Trading and Strategy, The Next Level
March 15, 2010 – 7:58 pmAlgo Trading Software
When you think of stocks and attempt to go out there and work on your own to build your own portfolio you are going to hear terms like auto trading, algo trading, stock scanner software, algorithmic trading, automated trading, black box trading, and robot trading, and you will not be alone. You may scratch your head but let’s look at some of these phrases and demystify them. There’s a movie based although it is quite old based on the premise that there is an algorithmic formula and when it becomes fool proof the recipe is for success. Is this something to believe?
Take your trading to the next level; There is stock scanner software like madscan, and others that helps you purchase and sell stock based on triggers or criteria that you have set. For example, this software will alert you when particular stock on the NASDAQ, NYSE, and AMEX exchange is available at a certain price so you can purchase it along with alerting you when it reaches a certain price so you can sell the stock. These are triggers you yourself have put into the program. This is considered real time automated trading. Whether you are interested in custom scans that are for your private use of their API for black box trading the software can assist you in today’s challenging markets.
By decreasing trade sizes caused by decimalization, algorithmic trading has reduced trade sizes further and jobs once done by human traders are being switched to computers with auto trading and algo trading now the future steps. As with anything else in the electronics age that we are in as more algorithmic trading strategies are introduced the easier it is to implement the computers since machines are faster than humans. Machines are able to identify mismatches and prices difference through several line items quicker and against several markets simultaneously. This is something we as society have strived for in the technology world, building the computer programs stronger and faster moving large amounts of information in a millisecond. Financial institutions are the ones that have to adapt quicker since they have the most to lose.
The goal to trading the stock is to find something that helps make it easier for you. There is no foolproof system, it doesn’t exist. If you can find stock scanner software like Madscan.com, that helps you when defining your choices then you do have a program working for you on your side to do a lot of the work. Automated trading has become part of life for the stock brokers. One thing that has not changed is if you decide to invest in any stock do some research. One thing that has changed is you have the advantages of algorithmic strategies with automation and speed.
So, what were some of the new terms that you should be familiar with? Here they are once again; auto trading, algo trading, stock scanner software, algorithmic trading, automated trading, black box trading, and robot trading. Except now you should have some understanding of the words. For more information, please check out our website at www.madscan.com


