What is algorithmic trading?

With the development of online trading platforms we can now all speculate on live financial markets and take positions for the purchase or sale of different assets such as Forex currency pairs or stock assets such as stocks or stock indices thanks to CFDs.

However, there are two ways to trade online. The first consists of manual trading by establishing your own strategies, while the second is called algorithmic trading and is an automated type of trading. This last method is the one we are going to present to you in this article.

What is algorithmic trading?

Algorithmic trading is also called automatic trading or high frequency trading and uses a calculation system based, as its name suggests, on an algorithm. Thus, it is a computer program that determines the positions to be taken, the direction of the trend, the volume to be traded and, finally, the strategy to be established.

Algorithmic trading therefore has some advantages:

First of all, algorithmic trading allows traders who do not have enough time to devote to speculation to take positions without having to follow the market.
Then, automatic trading allows an uninterrupted presence in the markets, something that a human being cannot do.
Finally, algorithmic trading follows a strict strategy based solely on the technical analysis of the markets and does not suffer any kind of stress or emotion that could cause you to make mistakes.

Inconveniences of algorithmic trading
Unfortunately, algorithmic trading has not only advantages, but also some important drawbacks. The main ones are:

In fact, its strategy does not take into account the emotions of investors and the movements and trends that may result from them, other than fundamental events.
Most algorithmic trading programs require customization that requires certain computer skills. It is true that there are ready-to-use programs, but they are often fee-based and relatively expensive.
Finally, algorithmic trading today does not present particularly exceptional results, especially if no consistent capital is invested.

An alternative to algorithmic trading
An alternative to algorithmic trading is to use the services of an account manager. In this case, it is a matter of entrusting your capital to an investment specialist, who will charge you for making the decisions in your place.

Thanks to this method you can entrust your positions to a trading expert who will also take into account the human aspect of the financial markets.

How to use algorithmic forex trading
Fortunately, the use of algorithmic trading in Forex does not require any specific technical knowledge and is, in fact, one of its peculiarities and its main advantage. In fact, it is enough to find a broker whose platform integrates an automatic trading tool to take advantage of it.

By subscribing to this option you will get a mathematical algorithm, and not a custom one, which will take care of trading in your place in the market.

Social trading, better than algorithmic trading
Discover an alternative to algorithmic trading thanks to the social trading offered by the eToro broker. Your positions will be taken automatically following those of the best traders on the platform.

The Sirix WebTrader, proposed by the broker Markets, is one of the latest platforms of the online trading market. But what exactly does this platform propose and what are its technical features, innovative tools and advantages?

This is what we propose you to discover here through a detailed examination of this new solution for trading on the stock markets.

A personalized visualization
Although most Forex brokers already offer visualization modules to view a summary of their traders’ positions, few of them are customizable. With Sirix WebTrader you have the possibility to create your own visualization.

Thanks to this system, you can quickly find all your items and sort and display them in the order of preference that best suits your needs. This display, which they call “cubes”, includes both the instruments and the size of the lots you want to see.

A social trading module
Like its competitor eToro, Markets wanted to offer its traders the use of popular social trading. But what does this module consist of? This feature of the Sirix WebTrader platform works like a traditional social network and allows you to track transactions made by other traders in real time. But this module is not limited to simply looking at other strategies. In fact, it offers the possibility to copy the positions of the selected traders in that community.

Among the data displayed we find the last one hundred transactions in real time, but also the pending operations and the updates of the other members.

The graphical analysis and techniques of the Sirix WebTrader
Another strong point of the Sirix WebTrader platform has to do this time with technical and graphical analysis tools. Indeed, there are different types of charts that allow you to access all the position statistics and trader analyses in one click. A business summary is also provided in a predefined period and determined by you.

In addition, trend forecasts can be accessed via this highly technological content platform. These relate to the main currency crosses of the money market and other assets.

Advantages of the Sirix WebTrader platform at a glance
In short, if you choose to join Broker Markets and its Sirix WebTrader platform you will enjoy the following advantages:

your orders will be executed in just one click;
you will enjoy a friendly trading environment;
you can follow and copy to other traders,
and you’ll have intuitive charts and live buy and sell signals,
all this without counting the other advantages of the online broker Markets that you can discover on our website.

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