How do trading algorithms work?



An Algorithmic trading is a practice of applying a large order using automatic pre-programmed trading instructions accounting for variables like time, price, and volume to send small shares of the order out to the market over time. It is humanly impossible to work in such large frequency of orders.

However, it does not gaurantee 100% profit but it works in a decent manner. The mathematical algorithms evaluate every quote and trade in the stock market, identify liquidity opportunities, and turn the data into smart trading decisions. It also cuts down transaction costs and allows investment managers to take control of their own trading processes. However, you can also take the help of an experienced advisory firms to get the profitable commodity tips based on technical and fundamental analysis of market.
(Source: https://www.quora.com/How-do-trading-algorithms-work )



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