What Is Algorithmic Trading?
Algorithmic trading refers to using computer code and software to execute trading positions (opening and closing) based on predefined rules, such as price fluctuations in the underlying market. When market conditions meet your specified criteria, trading algorithms can execute buy or sell orders on your behalf, saving you time from manual monitoring.
Through partnerships with leading platforms like ProRealTime and MetaTrader 4 (MT4), along with native API support, you gain access to multiple algorithmic trading solutions. Whether you want to build fully customized algorithms or use ready-made solutions, advanced technical analysis and charting tools simplify algorithmic trading.
Why Use Algorithmic Trading?
Eliminate Human Errors
- Avoid emotional interference in profit-taking and stop-loss execution.
React to Special Events
- Take action on unexpected events, such as the Dow Jones closing 500 basis points below its 20-day moving average.
Refine Existing Strategies
- Automate stop-loss and take-profit orders for better risk management.
Low Maintenance
- Set custom algorithms and let them trade according to your schedule.
Backtesting
- Optimize algorithms using historical data to determine the best combination of parameters.
Faster Execution for More Opportunities
- Maximize market exposure with automated orders.
Advantages of Algorithmic Trading With Us
- Build proprietary algorithms or use pre-built solutions for CFD trading.
- 24/5 Chinese customer support during IG market hours.
Which Algorithmic Trading Platform Is Best for Me?
The choice depends on individual needs—many traders combine multiple platforms to achieve different goals.
ProRealTime
- Easy Algorithm Building: Web-based charting toolkit designed for simplified algorithmic creation, backtesting, and optimization.
MetaTrader 4 (MT4)
- Pre-Set Algorithms: Access ready-made solutions (indicators/add-ons) from the MT4 marketplace for chart analysis and customization.
Native API
- Fully Customizable: For users with coding expertise (Java, Excel VBA, .NET). Offers maximum customization but requires programming knowledge.
Key Algorithmic Trading Strategies
1. Price Action Strategies
- Triggers orders based on historical prices (e.g., highs/lows).
- Popular among high-frequency trading (HFT) for capturing small profits in volatile markets.
2. Technical Analysis Strategies
- Uses indicators (Bollinger Bands, RSI, MACD) to automate trades.
- Reduces manual monitoring by relying on technical signals.
3. Combination Strategies
- Merges price action and technical analysis for comprehensive trade execution.
FAQ
Q: Can beginners use algorithmic trading?
A: Yes, platforms like ProRealTime offer user-friendly tools for beginners, while APIs cater to advanced users.
Q: How do I backtest an algorithm?
A: Use historical market data to simulate trades and refine parameters before live execution.
Q: Is algorithmic trading risk-free?
A: No—market conditions can change unexpectedly, so risk management (stop-losses) remains critical.