Fast Facts of Algorithmic Trading

INVESTOR SERIES

Algorithmic trading accounts for around 60-73% of the overall US equity trading (source: Wall Street).

Benefits of Algorithmic Trading Benefits:

  • Trades are executed at the best possible prices.
  • Trade order placement is instant and accurate (there is a high chance of execution at the desired levels).
  • Trades are timed correctly and instantly to avoid significant price changes.
  • Reduced transaction costs.
  • Simultaneous automated checks on multiple market conditions.
  • Reduced risk of manual errors when placing trades.
  • Trading can be back-tested using available historical and real-time data to see if it is a viable trading strategy.
  • Reduced the possibility of mistakes by human traders based on emotional and psychological factors.

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