Category: Algorithmic Trading

algorithmic trading

Algorithmic trading is defined as buying and selling of stocks through a computer program in an automated manner. No manual user interference is required . Each algorithm can be said to be like an aggressive mutual fund. Start it and sit back. In India, algorithmic trading was legalised or...

What is the correct mindset to trade in the Stock Markets?

Trading is often said to be a risky proposition. There is a lot of uncertainty and confusion among people who have just started trading with regards to whether they would be successful or not and also with regard to the process and methodology they need to follow for their trading...

The History of Mathematics in Algorithmic Trading

Algorithmic trading is all about some simple mathematics. Any logic can be converted into a mathematical expression and orders are placed whenever the expression is TRUE or FALSE. The Logic is what people call an ALGORITHM. And as said in a post earlier, this is one of the methods...

The theory behind the news affecting stock prices-Efficient Market Hypothesis

  The efficient market theory or the efficient market hypothesis, which fetched Eugene Fama, a Nobel Prize, says, that market efficiently incorporates all public information and that is the reason why you cannot beat the market because it has all the requisite data necessary. Giving a rudimentary introduction to...

Basics of Backtesting

Basics of Backtesting Testing of any trading strategy is of utmost importance before trading it live. One needs to have a correct idea about the returns and risk the strategy holds for him. Backtesting is a process by which a strategy is tested on historical data and lets you...

Components of an Algorithmic Trading System

In our last blog post, we gave an Introduction to Algorithmic Trading in simple terms. Taking the next step forward, let’s talk about its core components: Trading Strategy/Algorithm Backtesting System Execution System Trading Strategy/Algorithm: It is the logic behind buying and selling a stock. The time and price at...

What is Automated Algorithmic Trading?

Everyone has heard about this term, Algorithmic Trading. People have an image of a giant computer screen and a lot of mathematical equations soaring past their face whenever they hear it. If you know exactly what it is, congrats!, you are a part of a relatively rare community on...