{"id":3690,"date":"2018-11-29T13:06:47","date_gmt":"2018-11-29T13:06:47","guid":{"rendered":"https:\/\/www.wasteyourtime.co\/?p=3690"},"modified":"2019-09-04T11:25:46","modified_gmt":"2019-09-04T10:25:46","slug":"automatic-trading","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2018\/11\/automatic-trading\/","title":{"rendered":"Automatic Trading – What Is It"},"content":{"rendered":"

3 min read<\/span><\/i><\/p>\n

\"Automatic
\nAutomatic trading, also known as\u00a0Algo\/Algorithm<\/a> trading is a somehow new field in the financial markets.\u00a0<\/span><\/p>\n

It’s there since the 90′, but it started to get much more popular in the past few years, for 2 main reasons:<\/span><\/p>\n

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  1. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The technologies are way better to handle that kind of challenges \u2013 Dealing with a lot of data:<\/span><\/li>\n
  2. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Save it (it’s millions of giga-bytes\u00a0so you need special server farms around the world, and that’s something that only available in the past few years)<\/span><\/li>\n
  3. \u00a0\u00a0\u00a0\u00a0\u00a0Analyze it \u2013 Create an algorithm to go over that amount of data and also issue insights out of the data. This can take millions of years.<\/span><\/li>\n
  4. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Find a way to keep adjusting the algorithm. In the financial markets \u2013 what happened yesterday IS NOT a guarantee that it will act the same today. So, we need to know what happened yesterday, but also find a way to give it the appropriate weight in our calculations<\/span><\/li>\n
  5. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Many non-legit bodies got into the industry to try and take money from innocent customers, claiming they succeeded to figure it out.<\/span><\/li>\n<\/ol>\n
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