Whys of Algorithm Trading

Written by Michael Bigger. Follow me on Twitter.

 

 

If you are a trader considering trading your own algorithm (algo), I can think of many reasons why you should start creating your own algo today:

  

• If you already have a trading strategy, coding it will turn it into a process.

• Well-designed algos are efficient and effective.

• Algos can process much more information in real time than you can.

• Technology is cheap, so why not make it work for you?

• Algos improve consistency.

• Algos remove emotion from the process.

• Algos capture your knowledge about the market and compound it. 

• You will learn a ton doing it.

• Developing an algo is a creative process. It is fun.

• There is no downside to trying it.

    

Just do it. I post about algos on Twitter using the hashtag #tradingalgo. Join the discussion and tell me what you think.