- What is algorithmic trading or algo trading?
A computer software in which a set of calculations, rules are coded and trading or investment into stocks, futures, forex, commodities, options happen in 100% automated way is known as Algo trading or algorithmic trading. At Trade Vectors LLP one can see a demo of such computer software.
- Does algorithmic trading or automated trading is only for hedge funds or asset management companies or for banks or for big companies?
Many retail traders and retail investors are under such misconception, a computer software can be designed or coded by anyone. So, there is no such thing that algo trading or automated trading is only for big boys.
- Cost of automated trading software or Algo trading software is very high
It’s a myth, these days many stock brokers provide API in many programming languages. These APIs are free of cost, which are used to design your own custom automated trading software. Live stock market data feed is also free. Design and development of software cost is based on a number of hours or weeks it will take by a team of programmers. One can contact the Trade Vectors team to understand the cost and timeline. Beauty is - Usually no AMC and cost is definitely within the range/budget of retail traders and retail investors.
- Python programming is the fastest programming and best suited for designing automated or Algo trading system?
Again, it’s a myth. For a retail kind of trading strategy number of trades in a day would be less than 50, also a number of stocks in the universe are less, for retails investment strategy number of trades are less than 50-60 in one year. So, technically any programming language will suit to build such Algo trading software.Also, compiler-based programming languages like C++, C#, JAVA are always faster than Python which is interpreter based. But again, since a number of calculations and trades are less than 20 to 40 in a day, choice of programming language does not matter. Retail traders or investors can connect to Trade Vectors LLP to understand more about the technicalities of
