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

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Asked by Teoh Zetong

Asked on 20 Jul 2018

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!

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Soon Xiaohui
Soon Xiaohui
Level 5. Genius
Updated on 07 Jun 2019

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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Kenneth Lou
Kenneth Lou

on 23 Jul 2018

Woohoo expert lai liao. (Y)
Jay Liu
Jay Liu, Sleepyhead at Land of Dreams
Level 6. Master
Answered on 23 Sep 2018

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

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Yong Kah Hwee
Yong Kah Hwee
Level 6. Master
Answered on 22 Sep 2018

It is better as emotions are not involved. Only pure data. Humans tend to make mistakes in investments because of emotions!

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Nicholas Chan
Nicholas Chan
Level 5. Genius
Answered on 22 Sep 2018

Semi-automated algorithms with human intervention when necessary is the way to go currently. Algos can't handle regime changes yet.

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Sounds like a case of Robo advisors

i think most most people have seen a profit from the investments and I believe many more will be getting into it.

As we leverage iT more and more automation will be the way of the future

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