Introduction into algorithmic trading

1. RockSolidFx
EA Wizard

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3. Algorithmic trading, also referred to as Algo
trading and black box/Expert advisor.
automated trading by computers which are
programmed to take certain actions in response
to varying market data:
“Algorithmic trading relies on computer systems
to buy Currency or shares automatically when
predefined market conditions are met“

4. Who use it ?
investment banks, pension funds, mutual
funds, institutional traders,
Small Speculators
Retails Traders ( You and Me) Now have access

5. Advantages
Unemotional
Faster Reaction
Consistence
Repetitive action (looking for repeatable patterns
Better risk Management
Disadvantage
Human Touch(gut Feeling)
News events
Selecting which algorithm to use
Market Moves against your Position

6. Clear understanding strategy objectives
Robust pre-trade models
Built in money Management
Faster Reaction
Thorough post-trade analysis
Adaptable
Human Monitoring
Many Programmers are not Traders

7. Trader has Clear understanding strategy
objectives
Close out or reduces trade size
Adds to Winning Positions
Turns off during News Events
Selection of the best Algo to uses
Reduce any draw downs that may occur

8. 0
1
2
3
4
5
USD
Based
Yen
Based
Cross
Based
GBP
Based
Profit Factor
Monthy return
Yearly retun

15. Demo Testing
Live Testing
Development of Improved Techniques (Fine
Tuning)
Quantitative High Frequency Trading

17. One Size Does not fit all
Strategies & Techniques does not work all the
time.
Picking the best environment for the Algo in
my opinion is the Most sensible approach.
Consistent Monitoring for Optimal efficiency
Past History does not Guarantee Future results