Introduction to Automated Algorithmic TradingLet's break down the topic backwards, Automated Algorithmic Trading.
Trading is buying and selling of stocks.
Algorithmic trading is buying and selling of stocks based on certain pre-set formula-based conditions.
For example, one would want to buy a stock when its previous day's closing price is higher than the opening price for that day. So simply, a ratio of close/open > 1 would quantify the qualitative idea.
Automated algorithmic trading is buying and selling of stocks based on certain preset conditions automatically using computer codes.
As an example above, an automated algorithmic trading software will trade when the ratio of close/open is greater than 1. And as soon as that happens, the buy order is executed.
The concept sounds simple, isn't it?
The implementation is the tricky part. The first series of tutorials has focused on throwing in the jargons related to algorithmic trading. A higher deep down tutorials for each of the concepts will be released in the future.
Thanks for reading.