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Algorithmic Trading
(redirected from Trading algorithm)

   Also found in: Wikipedia 0.01 sec.
Algorithmic Trading
A computerized trading system that institutional investors use to make large transactions in securities while affecting their prices as little as possible. Algorithmic trading uses complicated mathematical formulas to identify the ideal times to buy and sell securities in large batches. Usually, algorithmic trading involves dividing trading a large number of securities as smaller groups so as not to cause panic buying or panic selling. Algorithmic trading contrasts with program trading, which is also a computerized system but does not attempt to minimize price changes. Algorithmic trading is also called black box trading.


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In this case, the author interviewed by BNN made the sweeping statement that the only difference between a trading algorithm and human trader was that the trading algorithm was faster – meaning we should all embrace the “efficiencies” these programs bring to trading.
Trading algorithm which is said to be revolutionary in terms of its development and continuous upgrades and enhancement.
Yet recent market conditions have been far less kind to our trend-following and breakout trading algorithms.
 
 
 
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