What is algorithmic trading?
Also referred as automated trading or systematic trading, algorithmic trading is a trading system that relies on instructions coded into a computer to predict movements in financial markets and place trades on its own. An automated trading system follows the market to monitor trends on the basis of different technical indicators, statistics based on market feeds, fundamental information of companies and streaming news data. Some of these programs are designed to try and have a good win ratio in order to return stable profits. Other systems may focus on a smaller win ratio but rely on greater size of winning profits. Algorithmic trading can be employed by hedge funds, prop trading firms, retail and institutional traders as well as any other fund management institutions.
Benefits of algorithmic trading systems
The major advantage of algorithmic trading is elimination of human error as these systems are run using computers without any human emotion involved. These systems can operate twenty four hours a day, as well as can make decisions at micro-second levels. An automated trading systems allows you to attain the best possible price on a deal and avoid slippage. These systems are equipped to handle the changing market prices and can be designed to work differently under different market conditions.
For effective algorithmic trading solutions, trust Aurora Solutions!
At Aurora Solutions, we offer cost effective quantitative development services in the algorithmic trading domain. We have a large team of quantitative developers who are highly proficient in developing and designing advanced trading systems. We are able to utilize complex mathematical models to build automated trading systems that can help the traders to formulate a trading strategy as well as its execution.
Our team has the necessary expertise to develop at least the following types of strategies:
- Technical strategies in futures, forex and equities markets.
- Strategies based on economic observables, fundamental equities data, and streaming news data.
- Macro forex strategies.
- Statistical Arbitrage strategies.
- Stock screening based strategies
For further information about algorithmic trading services provided by Aurora Solutions please contact us!