How To Build An Algorithmic Trading Model?
Algorithmic trading has emerged from being a specialization of mathematicians and PhD-level quants alone. Today, investment traders and analysts, and even technically savvy investors, can create models to automate many of the decisions that are made in the market. These traders and investors are utilizing data-driven signals to find opportunities and execute orders at speeds humans simply cannot replicate. The advantages are obvious: consistency and discipline in conducting and executing orders, as well as massive volumes of market data that can be processed in real time. It’s also important to understand what algorithmic trading is not. It is not guessing future prices. It is not a shortcut to instant wealth. It is not a simple formula that can be applied universally. Instead, it merges financial understanding, statistical reasoning, programming, data analysis, and the continuous evaluation of results. Whether you want to trade independently or aim for a future role at a quantitative ...