Algorithmic trading is becoming more common in Australia, as it offers many benefits over traditional manual trading methods.
One of the main reasons behind this rise in popularity is that algorithmic trading systems are designed to eliminate human emotions, such as greed and fear, which can cause problems when making financial decisions with your money. The computer-based model will only trade if the profits outweigh any potential losses and entirely take emotion out of the equation.
Algorithmic trading, in general, is focused on using pre-programmed rules and regulations to buy and sell securities in a certain timeframe or when specific conditions have been met. You don’t need any previous experience with coding or programming languages to use algorithmic strategies; however, if you have a background in programming, it will make the learning curve much faster.
When looking for algorithmic trading software, consider what is included in the package and whether this is suitable for your trading style. It may be time-consuming to familiarise yourself with how everything works when beginning with algorithmic trading, but things will become a lot easier after a while.
Choose a broker
When deciding on an algorithmic trading strategy, you’ll need to choose a broker. This is where you will open your trading account and connect it to the electronic trading platform that you have chosen. You should look for many things, including what kind of fees they charge, how secure their website is, along with any regulation problems if applicable.
Set up your trading account
After choosing a suitable broker to trade with, you’ll need to set up your trading account before using the software. The first time you log in after opening your account, some security features need setting up, such as two-factor authentication, which is generally done via desktop or android authenticator app. You may also need to provide further information for the process of setting up your account, depending on the broker.
Choose your trading strategies
Different algorithmic trading strategies work differently, so it’s worth considering what you’re looking for before purchasing software. Some things for you to consider are how much money you want to invest and any possible losses that may arise. You can also determine whether you want the software to only buy and sell options at certain times during the day or based on market conditions. You can check the Saxo markets here.
Install and setup your algorithmic trading system
After deciding which electronic platform you’ll be using, installing it is very straightforward. Once installed, follow all of the instructions regarding registration or activation of your product to get started using it.
Customize your algorithmic trading system
You can also customize the algorithmic software after you’ve activated it by inputting all of your personal information, including your trading goals, along with any stop losses or take profit orders that you want the program to follow. You may also need to ensure that any brokers are connected correctly.
Set up email notifications
After setting up your initial settings for the algorithmic trading strategy, you will be able to set up email alerts that will allow you to monitor and control trades more effectively. It is a valuable way of ensuring that everything runs smoothly without logging in multiple times during the day.
Use 3rd party websites
Many third-party websites offer algorithmic trading strategies for free, which you can use to make it easier to get started. These include forums like traderush, where users share ideas, strategies, and investing tips. You will need to evaluate any advice given here before acting upon it or deciding whether this is appropriate for your needs.
Keep track of your statistics
It’s also important to keep track of how much money you’ve invested in the market and how much profit you’re making on your trades daily. This should be done daily or weekly, depending on if you choose short or long-term investments. Another thing to consider is how much risk you want to take when investing in the market and choosing a suitable amount to invest too.
