Algorithmic trading uses computer programs to follow predefined rules and instructions to buy and sell financial instruments like stocks at high speeds and frequencies that are impossible for humans. It involves computers programmed to rapidly process information like price, volume, and market data according to mathematical models and defined algorithms to identify trading opportunities and automatically make trades. An example is a program that buys a share priced at 100 rupees and automatically sells it when the price reaches 120 rupees, allowing it to invest in multiple companies simultaneously with very short average holding periods measured in seconds.

1. ALGORITHMIC TRADING Divyae M Sherry
(1620313)
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3. WHAT IS ALGORITHMIC TRADING ?
Computers programmed to follow a defined set of instructions
The defined sets of rules are based on timing, price, quantity or any
mathematical model.
In order to generate profits at a speed and frequency that is
impossible for a human trader.
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4. A SIMPLE EXAMPLE
A share costs 100 Rs in the market.
The investor always sell the share when the price gets 120. (20%
increase in value)
Capable of investing in 4 Cos.
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5. Average Holding
Period
22
Sec.
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6. BIG BULLS OF THIS BUSINESS
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7. “WHO SAYS YOU CAN’T
AUTOMATE THE PROCESS
OF MAKING MONEY ?”
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