Algo Trading: Let Bots Do the Work

Thanks to our integrations with cutting-edge trading technology such as MetaTrader 4 (MT4) and MT5 which can be used to execute orders on most brokerages worldwide, you can take your investment strategy to a whole new level. You can create and monitor your own algo trading bots or work with one of our algo bots that continue to prove themselves over time.

Does Algorithmic Trading Work?

The idea behind algo trading is simple. Algorithms are simply a series of instructions meant to solve a problem. Algo trading combines complex formulas, mathematical models, and human oversight and intervention to make decisions regarding the purchase and sale of securities. Essentially, you can control numerous variables like price, timing, and volume, and the algo bot takes over.

Thanks to the algo bot’s ability to make decisions and take actions in fractions of a second, firms use them to make tens of thousands of trades per second. Algorithmic trading is used across the board for things like executing orders, arbitrage, and tracking trends.

 

The Benefits of Algorithmic Trading?

Algo trading has been around for decades. Algorithms were first introduced to the New York Stock Exchange in the 1970s. The Designated Order Turnaround (DOT) system handled routine orders from traders to specialists on the floor. Over the following years, electronic trading abilities increased and the majority of trades in the U.S. now happen via computer.

 

There are a variety of elements that make algorithmic trading so beneficial:

 

Remove Human Error

Trading is an emotional game. Even the finance manager with strict rules can find it hard not to let emotions or biases get in the way. Algorithms stick to the parameters you set.

 

Capitalize on Special Events

When you manage your own investments, it’s easy to miss rare or special events like the Dow closing 500 points below its 20-day moving average. Algo bots take advantage of these events without requiring human input.

 

Perfect Supplement To Your Existing Strategy

Using algo bots doesn’t mean handing over complete control. You can use algos to implement stops and limits to supplement your current strategy.

 

Bots Never Sleep

When you take advantage of trading algos to help with your investment management, you never have to worry about missing a trade. Algo bots can trade around your schedule to ensure you never miss a trade.

 

Increased Opportunity

Automation allows you to maximize your exposure to the underlying market with instant buy and sell orders.

 

Complete Reliability

Algo trading opens up your options to more than 17,000 global markets. The wider selection of platforms means reliable and seamless execution.

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    As Featured On:

    Business Insider
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    Medium
    “Three Ways Hedge Circle Can Make Your Investments Work Harder for You”

    Yahoo Finance
    Hedge Circle Offers Trading Service for all types of Investors

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