I recently came across the idea of algorithmic trading.
To put it in Wikipedia's terms:
"Algorithmic trading, also called automated trading, black-box trading, or algo trading, is the use ofelectronic platforms for entering trading orders with an algorithm which executes pre-programmed trading instructions whose variables may include timing, price, or quantity of the order, or in many cases initiating the order by a "robot", without human intervention."
Algorithmic trading can be split into four areas:
Auto-hedging – where hedging orders are automatically generated according to a formula for dynamically managing risk levels.
Statistical trading – where orders are generated according to differentials in relative values or according to algorithms devised around macro portfolio models.
Liquidity Access – where a trading solution has been designed to improve access to multiple trading venues.
Algorithmic execution – where trading styles are automated to control and finesse trade execution.
I came across forex-tradecopier which offers services in this domain.
You can read their strategy here.
I'm still unsure about how to use it for my advantage.
Are you guys using any automated softwares/programs?
Comment here and share!
Meanwhile I'll try Algorithmic Trading on my own!