- 24 Jul,2018
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Blog- Algo Trading Process Explained
Writer-Mcx Sure Gain
Algo trading or automatic trading is a process of using software programme to perform the trading on a defined instruction. Manual trading always being a headache to traders because trading with consecutive loses a trader panic and slowly it may be a cause of losing patience. Algo trading is also known as the emotionless trading. Most of the traders are now shifting fasting from manual trading to Algo trading because it is possible to generate profit speedy and increases the frequency. Algo trading or auto robot trading is possible in the Indian market as well as in foreign exchanges. Most for the trades using FOREX trading has adopted the Algo trading in their trading pattern. Most of the trading platform is now coming up with inbuilt the auto trading feature which makes trading easy, profitable and emotionless.
PROCESS OF ALGO TRADING:
One can quickly initiate the Algo trading in their trading pattern by using some simple steps. Now, let’s discuss the prerequisites needed for performing auto robot trading or Algo trading.
Creating a Strategy:
First and the essential requirement is the Strategy on which we need to perform our auto trading. For making a strategy, we require charting software. MCX Sure gain advice for MT4 Platform because we feel that MetaTrader 4 is the best Platform for building a strategy. MT4 comes with inbuilt charting feature where we can see the chart of any symbol with the historical data feed and current market data. MT4 is also loaded with the essential indicators which are there in the market from more than 100 Years and even traders in stock and commodity market are using them for a long time. I am giving some name like Moving average, MACD, Bollinger band, RSI, ADX and many others. On the chart, we can plot one or more indicators and can plan a strategy along with the indicator or the combination of indicators.
It is not compulsory that you need to use those indicators which are available in the MT4 indicator list but, you can make your strategy as well if you have a little knowledge of coding. If you don’t know about coding then also you can code it from the market.
Coding a Strategy:
After making a strategy, we need to code it for Algo in any language which is supported by the trading platform or the charting platform. MT4 is again best for coding a strategy because it comes with the MQL editor where one can merely code the strategy accordingly. If the trader is not as technical in coding, the can freelance or give any project on the freelancing websites. MCX Sure gain is also providing services for coding strategy according to the conditions or the indicators presented by the traders. Once your strategy gets coded, then you can proceed to the next step.
Testing the strategy:
Examining the strategy is very important because it is the only task which will clear the picture of the strategy. The coded strategy needs to be tested in most of the time frames and with many symbols. It is not the final step because we need to check the strategy by changing the parameters also because a single metric doesn’t work on all symbols and on all time frames. MT4 comes with one more attractive feature called strategy tester. In the strategy tester, you can examine the past movement data with your indicator, and you can get the result data about your success ratio of you your trading strategy.
Making Rules for trading:
Once you test and found that the indicator or the strategy you made is profitable for you and it can make money fastly, you can move further to write down the rules of your trading strategy, and then you must follow those rules for being a successful Auto robot trader or Algo trader. For being a successful trader, we must make and follow the rules. Trading only can be profitable in Algo trading, if you don’t alter our rules. Changing parameters or the strategy frequently can give false results.
Algo trading is just like a Robot trading without any manual intervention. Traders should do the process told in the above paragraphs and follow it with determination. These are the necessary things about Algo trading. Be a part of it and start earning the profit by being a successful smart trader. If the reader wants to get more knowledge about Algo trading, can visit our website http://www.mcxsuregain.com or Call or WhatsApp at +91–9555455557. I hope reading this blog increase your understanding of the Algo or auto robot trading.