Algorithmic Trading Programs
Algorithmic trading uses computer programs with pre-defined instructions (algorithms) to automatically execute trades in financial markets at high speeds such as the cryptocurrency market.
These instructions are based on variables like time, price, quantity, and mathematical models, removing human emotion and error from the process.
Trading Strategies
​Trend Following: These strategies identify and follow market trends using technical indicators like moving averages. A common example is buying when a short-term moving average crosses above a long-term moving average.
Arbitrage: This involves exploiting price discrepancies for the same asset across different markets simultaneously to lock in risk-free profit.
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Mean Reversion: Based on the idea that asset prices eventually return to their historical average, these algorithms place trades when prices deviate significantly from the mean, expecting them to revert.
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Market Making: These algorithms provide liquidity to the market by continuously placing both buy (bid) and sell (ask) orders, profiting from the bid-ask spread.
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Volume-Weighted Average Price (VWAP): This execution strategy breaks up large orders and releases smaller parts to the market to achieve an average execution price close to the market's volume-weighted average price over a specific period.
*Our algorithmic trading programs are fully backed and constantly monitored by specialists in order to ensure effectiveness and user safety while complying with regulatory obligations.
Key Concepts:
Speed and Efficiency
Emotionless Decisions
Market Impact Minimization
Algorithms can execute trades in milliseconds, much faster than a human, capitalizing on fleeting market opportunities and ensuring trades are timed correctly to avoid significant price changes (slippage).
Trading decisions are purely based on logic and data, not emotional factors like fear or greed, which can lead to a more disciplined approach.
For large orders, algorithms can break them into smaller, dynamically timed chunks to minimize their impact on market prices.
Backtesting
Before going live, strategies can be tested against historical data to evaluate their potential performance and refine parameters. For more details, please consult with your account manager. For new Customers, please contact us.
