What is algorithmic trading?
What is algorithmic trading?
Algorithmic trading, also known as automated trading or algo-trading, involves using computer programs to execute buy and sell orders in financial markets. These algorithms follow predefined rules based on mathematical models, statistical analysis, and real-time market data.
The difference from manual trading
Unlike manual trading where a trader makes each decision themselves, algorithmic trading eliminates the emotional factor. An algorithm feels neither fear nor greed. It executes its strategy with perfect discipline, 24 hours a day, without fatigue or hesitation.
Why institutions have used it for 20 years
Major investment banks and hedge funds have been using algorithmic trading for over two decades. It's estimated that more than 70% of transactions on US markets are now executed by algorithms. The reason is simple: results are better, more consistent, and risk is better controlled.
How QuantStone makes it accessible
At QuantStone, we developed 3 algorithmic strategies that were reserved for professionals. Today, with a minimum deposit of €100 and a 15-minute setup, anyone can benefit from the power of institutional algorithmic trading.