whats the big deal with algo trading by big traders?

#11
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.
Terry, everyone in the market want's to blame on someone when **** happens.. ;)... If 1 lot got traded at 180, it must be an amateur who placed a market order in a hurry to cover the put when he saw the market was going up.. He would by now have sent an email to the broker complaining why it got traded at 180 when market was at 150.. ;)

Understand this, Most algo's today(80%) work on nifty and even if someone works on stocks it is more cash future arb rather than anything else... The option liquidity is so bad, that no one running an algo would even look at stock options...

An algo is just a program written by a trader.. Instead of looking at the screen calculating, the algo would calculate and execute.. Algo is not evil.. People are... ;)..
 

onlinegtrash

Well-Known Member
#12
just to add to the discussion.

My story of entering into trading has a lot to do with algo trading :)

Being a computer grad, computers & programming is what I studied to put bread on my table. I had this wet dream of writing a perfect algo and turn my laptop into electronic ATM ;) (I can afford for algo platforms and write my own programs)

After playing with tick data for a year the truth seems to dawn on me !

Any thing based on TA is going to get hit harder, its like playing Russian roulette, play enough time (everyone survives until the last fatal day!),
a wipe out or slow death by bleeding is bound to happen (unless you are market maker running arb. strategies) .

I have not given up my dream, but the reality is glaring straight into my eyes sometimes mocking me and throwing all my efforts to dust !

But I do believe some day trading IQ of computers may exceed any human (like it happened in chess!), on that day, my computer would boot itself and set my garage on fire, after wasting my day in putting out the fire, my computer may print a memo like this:


Todays profit, 2.3 Billion INR, traded in 28 International exchanges,
set the garage on fire just to keep your stupid brain from interfering with my strategies,
I know you can't be convinced logically to stay away from me.​

I guess computers have to get that evil to compete with humans ;)
and sure some day it will !
 
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trump

Well-Known Member
#13
Algo trading has much to do with statistical analysis , where in the anomalies ( they are very minuscule ) are exploited with thousands of trades executed for a very small profit, even for a single penny, so the individual traders simply can't match their speed and accuracy, they can only piggy ride for a small profit.Individuals going for scalping have to be profitable more than 70% of time just to break even , but then the ruin catches up finally.Be careful.Happy trading.:)
 

anuragmunjal

Well-Known Member
#14
just to add to the discussion.

My story of entering into trading has a lot to do with algo trading :)

Being a computer grad, computers & programming is what I studied to put bread on my table. I had this wet dream of writing a perfect algo and turn my laptop into electronic ATM ;) (I can afford for algo platforms and write my own programs)

After playing with tick data for a year the truth seems to dawn on me !

Any thing based on TA is going to get hit harder, its like playing Russian roulette, play enough time (everyone survives until the last fatal day!),
a wipe out or slow death by bleeding is bound to happen (unless you are market maker running arb. strategies) .

I have not given up my dream, but the reality is glaring straight into my eyes sometimes mocking me and throwing all my efforts to dust !

But I do believe some day trading IQ of computers may exceed any human (like it happened in chess!), on that day, my computer would boot itself and set my garage on fire, after wasting my day in putting out the fire, my computer may print a memo like this:


Todays profit, 2.3 Billion INR, traded in 28 International exchanges,
set the garage on fire just to keep your stupid brain from interfering with my strategies,
I know you can't be convinced logically to stay away from me.​

I guess computers have to get that evil to compete with humans ;)
and sure some day it will !
hi

in any case a 'program' is designed by a 'human'..
I read somewhere that a perfectly rational individual starts behaving irrationaly when in a 'crowd'.. teach ur computer 'herd mentality' and maybe one day...

regards
 
#16
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
Hi,

do you algo trade? If so through with software and broker? Thanks
 

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