Algorithmic Trading

Algorithmic Trading Strategies

Welcome to the world of algorithmic trading. Algorithmic trading is an exciting, fast-paced career option for those wanting to have a repeatable edge in the market. 

Whether you are a seasoned trader or just a beginner, Algorithmic trading is one of the best things you can learn to do because it takes all the guesswork out of trading.

What is Algorithmic Trading?

Algorithmic trading, or Algo trading, as it is known in the industry, can be used when dealing with any market. The techno-driven market is now open to anyone with the funds, and the skills enter this matrix. 

Algorithmic trading is done with computer programs using a code, or defined sets of instructions. The trades are done much faster than humans can accomplish using this model. The algorithms are derived from mathematical models that can factor in technical analysis, pricing, patterns, fundamental analysis, and unique datasets. In essence, it takes the human factor out of trading that could influence the trade either positively or negatively.

Why Trade Futures?

As a risk management vehicle, futures are quite liquid. Their value is derived from base assets like stocks or bonds. Futures get traded on an exchange and form an agreement between parties to sell or buy an asset at some future point at a specific price.

If you are the one doing the buying, you are considered to be “long,” while the one who sells the asset is said to be “short.” There has to be a match with price and quantity, but there is no actual physical asset transfer. The focus is on the price of the asset in the future once it has matured. 

Also, it’s inherently cheaper to trade futures than it is to buy an actual asset. You would have to buy each stock on the S&P 500 to accomplish the same objective as going long in S&P futures.

How to Become an Algorithmic Trader 

Does reading about some of these trading opportunities pique your interest and get your blood pumping just thinking about the lucrative trades that you could be making? You might be ready to plunge right into the complex and challenging world of algorithm investing.

Or maybe you just want to dip your toe into the waters of algorithmic trading to see how you like it before quitting your day job. It’s possible to do Algo trading at home right from your PC. All you need to do is to open and fund a trading account and download and run some software, and you’re off.

Is Your PC Sophisticated Enough to Algo Trade?

It makes sense that those just breaking into the world of Algo trading would begin using the materials and resources that they already have at hand, e.g., a shared PC or even a multi-use laptop. But the more trading you do, the more necessary it may become for you to designate your trading activities to a single computer that can remain permanently online. That’s a requirement for running almost any Algo Systems. Your computer must be locked and loaded on the internet 24 hours a day, six days a week. 

If you are serious about employing Algo trading strategies on your trades, it is a good idea to dedicate a single PC for all trading activities. The computer you designate solely for Algo trading should optimally have 16 gigs of RAM and four-core processor. That can minimize the risk of your computer updating or shutting down at a critical trading moment, thus costing you a profit.

How You Can Learn Algorithmic Trading

One of the best and easiest ways to learn how to become an algorithmic trader is to take our course on becoming an Algo trader. The virtual classroom setting allows learners to quickly

cover in Part 1 the basics of the stock market, from its history to the basic building blocks of trading. 

Part 2 expands on the lessons learned in Part 1. You’ll explore algorithmic trading strategies and dive much deeper into Quantitative Analysis as it applies to futures algorithmic trading strategies. You will become familiar with using tools like Excel and trading platforms like Tradestation and Python.

Algo Trading — A Future Not Without Risk

You’re bold, aggressive, and have a keen competitive edge. You feel that you have the coding, programming, and financial chops to conquer the world of Algo trading. You’ve taken and done well in the algorithmic trading course and developed sophisticated and theoretically viable algorithmic trading strategies. Do you have what it takes to succeed at Algo trading?

Not if you’re not prepared to lose sometimes. Keep in mind that it is all speculative, and anyone or several factors can bring the winds of change to the trading conditions. In other words, nothing is a sure bet in the world of algorithmic investing. Those unwilling to risk a loss may be hindering the progress that might one day lead them to achieve a big win. 

Would you like a commitment-free way to learn more about the dynamic field of algorithmic trading? You can sign up for our free course!

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*******All performance metrics mentioned here, on, Interviews, or any place else are deemed hypothetical in nature. According to  Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Triforce LLC (Matthew Owens) is not a licensed broker/dealer, nor is he/company a registered CTA, therefore unless otherwise third party verified through the licensing government bodies, all performance metrics are hypothetical.  Please refer to our Disclaimer. *********