Algorithmic trading is a form of automated trading that happens with the help of computer programs that follow a defined set of instructions that are created by a trader for the purposes of placing a trade. Algorithmic trading helps traders minimize the risks of losing their money during trading by taking the human factor away from the process.
The defined instructions of the algorithmic trading setup are based on timing, price, quantity, and other variables. While the algorithmic trading traditional model requires programming skills, 4Bulls offers a simple drag-and-drop editor that allows a trader (with no knowledge of coding) to create and program a unique algorithm.
If you want to trade by following the moving average (MA) indicator, you may choose to create an algorithm that does just that. For example, you may program your automation tool to buy 50 units of ETH when the asset’s 5-day Moving Average goes above the 200-day Moving Average and then sell the cryptocurrency when its 50-day Moving Average goes below the 200-day Moving Average.
In addition, you may choose to add “Safety” and “Insurance” commands. These commands will monitor the process and will quickly close the positions if there are any emergencies.
The above are a few simple examples of what algorithmic trading can do for you. Your ideas can be pre-programmed in the form of trading instructions that get executed upon meeting specific variables.