whats the big deal with algo trading by big traders?

onlinegtrash

Well-Known Member
#1
Excuse my ignorance !

I have seen traders complaining algo trading makes life harder for retail traders.

yeah it may induce flash crashes, but isn't that cool that day traders can pounce on!

yeah it may induce more volatility and whipsaws, can't we avoid that simply by moving a time frame up or adapting a range based strategy within the current time frame (where whipsaw is happening?)

what's the big deal? I may be missing some point, do help me out !

other side of the coin, what the heck are you going to do, if you have an algorithmic platform available to you?

top traders (say Jessy Livermore) did pretty fine without algos and usually systems trading guys earn their money through arbitrage strategies which is impossible for retail traders. Its a well known fact, developing a winning algorithm for all seasons is almost impossible, why do traders think having algo trading capability in their arsenal can make a difference to them !???

I understand algos are useful in arbitrage strategies, have you ever seen guys making money (in US or somewhere) with algos in non arbitrage strategies consistently?
 

SexyTrader

Well-Known Member
#3
The traders who complain consistently loose money so instead of blaming themselves they blame algo trading.
Correctly stated :thumb:

NONE of the Algorithms can ever beat the HUMAN BRAIN :)

Algo = trading Frankenstein :rofl: does nothing beyond creating horrors...and minor profits through scalping but wont last long coz what the **** does an Algo know beyond executing rapid trades in milli or nano seconds :p NOTHING!
 
#4
I would also like to add that this so called algo trading is nothing but high frequency trading a.k.a HFT. HFT is super fast scalping for the big boys. It's been in all major markets for quite some time now. but humans are still around...
 
#6
what is the scalping, can anybody xplain with ex
scalping is taking a positions in the market for seconds to max a minute to make very small profits maybe 5-10 paise. scalpers are people who get in and out of the market taking a very small move but on huge quantities


regds
raminder
 
#7
to all the people for and against algo trading.........

algos are nothing but a set of rules defining why we will enter and how will we exit with time durations frm milliseconds to days

and above all every algo in the world is developed, written by a human. So every benefit or loss that arises from algo trading is due to a human only

regds
raminder
 
#8
I don't know why every blame is put on algo trading.. Algo trading is what is giving us the little liquidity in the markets... Those being not there, forget placing any market orders... We need to understand, during the flash crash, the algo trading guys are the ones who get hit the most...

I have been on hibernation for so long on traderji, feels nice to be posting something...
 
#9
I don't know why every blame is put on algo trading.. Algo trading is what is giving us the little liquidity in the markets... Those being not there, forget placing any market orders... We need to understand, during the flash crash, the algo trading guys are the ones who get hit the most...

I have been on hibernation for so long on traderji, feels nice to be posting something...
welll said.......:thumb: :clapping:
 
#10
latest blunder by Algo trading 20 minutes ago today, infy 2400put traded at rs 180 as stock have recovered , earlier it was trading at 130 when stock was down.
 

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