Weighted average price strategy

By far one of the best algo trading strategies. It is either based on volume or time. Small chunks of large volume holding are released either based on historical volume profiles of the asset or set the time between start and end time. 

The aim is to protect from the impact of the volatile market by closing the deal as near as possible to the volume-weighted average price or time-weighted average price. The system and algo together execute the trade successfully without any error that a manual process lacks. 

Comments

Post a Comment

Popular posts from this blog

Who uses algorithmic trading?

Image
Algo trading can be done by anybody who has the upper mentioned skills and desire to accomplish. However, the popularity and demand amongst the institutional traders like hedge fund managers have no bound since it is extremely difficult for them to manage manually. Apart from them, the retail investors, quants, and Proprietary traders are also acclaiming the algo trading especially by the scalpers and even day traders.
Read more

What is the best algorithmic trading software?

Image
The importance of algo trading software lies in the fact that you put your hard-earned money in that. It becomes extremely critical for you to select a good fit. A few of the important factors to consider while selecting the software are the availability of market data, latency issues, configurability, customization, and ease of writing programs. With the ever-increasing market of algo trading, the options have no limit. Still, a few of the top software that you can select from are, NEST, Greek Soft, uTrade, Trade Lab API, Amibrokers, MT4, Interactive Brokers, and E-options for options trading.
Read more

Algorithmic Trading strategies: Ace the game of trading.

Technology is developing rapidly and has impacted almost every sphere of human activities. The trading business is not left unaffected. Algorithmic trading or Algo trading is a new-age trading practice that out beats the human endeavor to generate profits. It is also called as : Automated trading Black-box trading  Algorithmic trading as the name suggests is a computer-generated program that follows a fixed set of instructions known as an algorithm to bid a trade. The algorithm is based on timing, quantity, and price. Advantages of Algo trading :      Trades are completed at the best prices.      Renders high efficiency of trades and hence higher profits .      Better Risk Management      Better Money Management Algo trading strategies make trading more systematic by evading chances of human errors. Also, trading is High -frequency- trading(HFT) that is capable of bidding a large number of orders on multiple markets. ...
Read more