What are the examples of Algo Trading? Difference b/w automated trading and algo trading?


#1

I know technically it is the computer doing trading based on algorithms(I know the definition) but I want to know real examples. 1.) Whether there is one in Pi trading platform? 2.) And whether Amibroker(AFL) or Tradescript are called as Algo trading? 3.) Also what is the difference b/w AFL and tradescript?


#2

AFL and tradescripts both are programming languages of technical analysis, Only difference is AFL is used by amibroker and tradescript is used in Zerodha Pi, AFL is little complex language and Tradescript is very simple.

In Zerodha Pi or amibroker you can generate buy and sell signals based on the given condition,

Algo trading is taking positions/ trading based on the algorithms coded with technical analysis etc.,

Algo trading might be manual, on generated alerts or automated,

Automated trading is automating your algorithm by configuring it to auto place order on buy or sell signals generated from algo.


#3

This is the most common misconception associated with Algorithmic Trading. Algorithmic and Automated trading are not same. You always have an option to automate your Algorithmic strategy but it is not necessary. You can even trade manually through the signals generated through your Algorithmic system. In order to automate your Algorithmic strategy you have to get an exchange approval for your algorithm. But that is not a difficult process until your algorithm is error free.

Read more about Algo Trading and few examples in the below link:


#4

And what is the difference b/w Algo trading and Automated trading? Are both the same thing?


#5

please check above updated answer.


#6

hello algogeek, can you plz tell me from where i can do auto trading?


#7

Algo trading is a high level of the trading system that uses extreme level of mathematical models and charts to identify market patterns and to take an important trading decision in the financial market.


#8

whether some broker is providing algo trading ?