In search of an algorithm for Stock Trading
Wholesale or retail, buying and selling goods and services has been one of the oldest professions in human history. When there is demand, there comes supply and a market brings potential buyers and sellers together. In the modern age of internet, online platforms have replaced physical markets to a great extent and online shopping has been growing at enormous speed. When the asset that is traded is not a physical one, online and digital nature of exchanges are even more inevitable as in the case of stock and forex trading.
While moving physical exchanges onto an online platform seems to be a kind of revolution in itself, setting up an environment where exchanges take place without human interference is even more of a breakthrough. It is the internet that makes online exchanges possible and it is stock trading algorithm software that allows this process to be automatized.
A game changer!
As in all forms of trading, profit is the main motivation in stock market trading and the search for greater profits in relatively more secure ways has led to the emergence of stock market trading algorithms. The 21st century has seen the arrival of so many breakthroughs in almost every aspect of life.
Today, medical doctors make use of “artificial intelligence” (AI) in an effort to detect cancers. Farmers are investing in drone technology in order to make an effective surveillance of vast areas possible or in automatic milking systems so as to maximize productivity and cost-efficiency. While new machinery is being introduced into every production process, software gives soul to the machinery. In so many cases, without smart software, machinery is nothing but a pile of metal.
Without the electronic monitoring systems and the software that controls these systems, aircrafts would be nothing but simply big bulks of metal. Without automatic quality control mechanism, conveyor belts would be nothing but primitive mills. In all of these super-efficient systems and technologies, it is the software that breathes life into the machinery. In another analogy, software can be likened to neurons that makes the brain work. Stock market algorithm software, on the other hand, is what adds the magic to stock market trading.
Computers that can make money!
As can be seen in the examples mentioned above, computers are capable of taking charge of almost all production, supervision and even decision-making processes when they are equipped with smart software. Given that machinery is, in most cases, more durable and faster than humans, computers can also be better traders. However, no computer can make investment decisions or log into your bank account to place buy or sell orders without the controlling and supervision of a software.
Computers can understand your commands only through software. Right at this point, writing codes turns up to be the first and probably the most important step of starting your journey of algorithmic trading. The roadmap your stock market algorithm software is going to follow is purely a product of your imagination. The order of operations, timing of certain actions or visualization of data are all up to the designer of the software.
Coding your mind into software
Painters, singer and poets! They all create pieces of art that reflect their souls, their hearts and their mindsets. With stock market trading algorithms, you can also reflect your thinking in the structure of your software. If you are a daredevil trader who is never shy of taking risks, then it should definitely be coded in your software. If you are fond of safe havens, then you should opt for an algorithm that is built on cautious and prudent steps.
An algorithm is your preferred solution to a problem. An algorithm is your preferred route to a destination. Actually, your decision to engage in stock market trading is a part of your algorithm to make money or become rich. Giving the girl you like a follow on Instagram is a part of your algorithm to marry that girl in the near future. A trading algorithm, on the other side, is your preferred strategy to do profitable trades. It is a roadmap.
What’s your road map?
Traders have plenty of road maps to follow, which are shaped by their preferences. However it is always wise not to re-invent things. There is already an immense pool of knowledge and experience offered to traders by investment banks, individual brokers or modern initiatives like Zeus Capital. Having a quick look at the world’s most valuable companies, you can see the list is exposed to a constant change. While General Electric was at the top of the list in late 1990s, it is companies like Microsoft, Amazon and Apple that dominates the lists these days. The dominance of information technology companies also suggests that the future belongs to computer and software technology. That’s why the future of stock market trading belongs to algorithmic trading. Being aware of this fact, Zeus Capital has ventured to uncharted waters in a bid to shape the future of trading and come up with brand-new trading tools. Contrary to conventional banks and investment companies, Zeus Capital builds its trading strategy on the rising pillar of software engineering and the power of algorithmic trading.
