- Trading

You are a successful trader or an aspiring trader. You use technical or fundamental analysis to generate profit. You spend most of the day watching the ticker screen.

If these statements describe who you are as a trader, you should consider generating more profit by building an algorithmic trading platform. Let technology work for you by leveraging your trading knowledge.

There are many ways to start algorithmic trading, but this is the method I recommend:

• Find an online broker with strong technology that can enable you to deploy your own algorithm. I wrote the following post on how to choose the right online broker for your algorithmic trading business: http://bit.ly/8Qli9Y.

• I cannot emphasize this point enough: Your broker must have pre-built algorithms you can use right from the get-go and a sandbox to test these algorithms with your trading methods.

• Go test your ideas in the sandbox using these pre-built algorithms.

• Once you are comfortable with how your algorithm performs, deploy it in the market.

• Keep track of your results.

I use Interactive Brokers (IB) for my algorithmic trading business. There are plenty of good online brokers out there, and IB is one of the best. Check out this IB video entitled “How to Capture Profit using the Scale Trader.” I can think of many ways to trade using this algo. What about you?