facebookIs anyone using algorithmic trading (would love to know if it's significantly better than doing it the human way)? - Seedly

Zongzong

Retail Investor at A Few Months

26 Sep 2020

General Investing

Is anyone using algorithmic trading (would love to know if it's significantly better than doing it the human way)?

Let me know if there's any good readings about that too!

Discussion (7)

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Yes. With algorithmic trading, the impact of human emotion on trading is eliminated. Algorithmic trading also gives you the best possible prices at a minimal cost without impacting the price of equities. Algorithmic trading uses probability and mathematical patterns, unlike regular trading, which involves financial reports, news, fundamental analysis, and other signals. As a signal provider myself I do it the “human way” but use a decentralised signal distribution platform, https://www.signaldp.com/, to automate the experience to my followers

Soon Xiaohui

07 Jun 2019

Analyst at Common Place

Hello

Here's my thought:

For algorithm trading - it helps to remove your emotional fears, and it helps you to stick to your trading strategies firmly.

but the downside is you must know how to code, it is not the usual programming language. It has little documentation on it. And before you start, you must have firm strategy & trading experience.

For manual trading - we may self sabotage our trades by gambling, not sticking to our own rules, forgotten to implement risk management into our trades, etc. And not to mentioned, we may not have time to look at the charts.

But the adv is you may trade more profitable trades than algorithm trading as algorithm requires absolute conditions to enter or exit the market.

Well even though algorithm trading is tough to code but what I can suggest is why don't you start from modifying some of the trading indicators to improve the accuracy of your trading strategy.

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Jay Liu

23 Sep 2018

Accounting and Finance at ACCA

Humans have emotions while algorithm trading doesn't. One shouldn't trade based on emotions and thos...

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