Algo Trading

[Andrew31616]

Im interested for a long time in the financial markets and read alot about algotrading , In this point of time i feel prepared to invest and see how it goes,
i would like to ask a few questions .
1. is algo trading only by a robot ?
2. when im searching for a company what i need to focus on?
3. how much money should a starter invest ?
4.how the the robot use risk managment ?

 

[omer]

These are great questions , let me answer each question of yours .
1. it really depends on the company and her strategy , people these days work together with robots to try to gain the highest potentiel out of the financial market , so obviously most of the time it will be a combination of a person and a robot together.

2. First of all when your searching for a company you have to see if there regulated .
Today in the world thousands of companys are not legit and fooling people by " taking care of there money"
but its exactly the opposite , So first thing to check is license.

3.Regarding this question actully there is no start amount people start with 50000 people start with 15000 and people can start with 5000 , this question really depends on the type of the person itself and how fast hes getting confidence in the system. Most people today get confident when they see a straight road to achieve there goal by a simple strategy.

4. 2 basic things
1 . Stop loss - its exactly how you hear it , the robot is working with a simple way to make sure you are not risking to much from a positon so he commands to put an automatic stop to the lose wich cant make you loose more then what he comanded.

Take profit- its exactly the same just the opposite.

Hope i helped

 

[CavaliereVerde]

What do you mean by "reading a lot"?
It s not so clear if you want to become an algo trader or you want to invest in funds that do algo trading...
In both cases I suggest you to read books by Robert Pardo and Kevin Davey to understand what is and what you can acheive with algo trading.

 

[hefoba]

1. is algo trading only by a robot ?
One robot will not do the job. One trading team and some robots can do the work. Read about Jim Simons. https://en.wikipedia.org/wiki/Jim_Simons_(mathematician) he is one of the pioneers in robot trading.

2. when im searching for a company what i need to focus on?

Focus on track record and regulation. There is a lot of different solution on the net. Fund traded by robots or account you can copy traded by robots. But track record and the possibility to discuss with the company.
If you can't reach the company before you put money in the account you will have a hard time to get in contact after

3. how much money should a starter invest ?

Invest small amount ( minimum here ) and see that what the company says is correct. Time is your friend so do not rush.


4.how the the robot use risk managment ?

Risk management is a big topic so hard to answer here. Best is to ask each company. They should be able to answer it

 

[ionone]

3. $1000 with 0.01 lot is the minimum. you can try cent accounts, but it's much harder to make it profitable as the spreads are far too big

 

[TechnicalTrader123]

Im interested for a long time in the financial markets and read alot about algotrading , In this point of time i feel prepared to invest and see how it goes,
i would like to ask a few questions .
1. is algo trading only by a robot ?
2. when im searching for a company what i need to focus on?
3. how much money should a starter invest ?
4.how the the robot use risk managment ?

Answering your questions to the best of my knowledge-
1. Algo trading is done using Algorithms. You can say robots but these 'robots' will only do as the algo says. You can manually trade some stock into your portfolio without using the algo trading platform but it is usually recommended to use the platform as it gives a more disciplined experience.
2. There is no need to choose companies in a certain way when doing algo trading. You can choose companies in the same way you would choose when doing manual trading.
3. It is recommended to trade with 10% of your capital so that even if you lose all of it, you would still have 90% of your capital left.
4. Each robot will have different risk management features. Some will have more robust systems some will have relatively less robust systems, however almost all 'reputable' Algo Trading software providers provide enough Risk Management features to satisfy all kinds of investors.