Algorithmic Trading

Algorithmic Trading in India is not very popular, has just started sprouting. Goldman Sachs, Credit suisse all with their global efficient electronic platform about to wooing Indian HNIs.Till now it is available to captive trading benches of brokers and investment bankers where algorithms are used to trade.

First of all answering some basic questions:

what is algorithmic trading (AT) ?

it is nothing but trading with the help of computer algorithms to make best use of the opportunity available in the market, which is present for such a short time, that is very difficult to track with human eye. while on the other hands computer can sit waiting for the whole day for such a event.

e.g. say jan future trading at significant discount then depending upon the algo opportunity can be exploited using F&O or Cash market.

Usage ?

According to one report in US AT makes 30% of the whole trade happens at the exchange.

Quant?

It is the name given to person who design and code algos to find arbitrage opportunities in the market.

In the following posts, i will try to share various algos used in the process and will try to incorporate if i am able to do it .