Algorithmic Trading and it's Pros and ConsAlgorithmic Trading is the activity of bots to perform buy and sell actions on an exchange. These bots are scripts created by traders to eliminate manual trading.
It's all rule-based trading. A trader codes the indicators, moving averages, and various other conditions for the buy's and sell's to happen. Stop losses and take profits are coded and so are dynamic buys and sell conditions which makes algorithmic trading even more versatile.
Pros
Speedy executions make it easy to capture quick price movements as soon as they occur.
There is no risk of any human error during trading.
Execution of large volumes of trade in a short period of time.
Ability to backtest historical data to train the algorithm accordingly.
Investment can be diversified using multiple trading scripts.
Cons
Technology Dependency which means if the algorithmic trading platform is not reliable, there could be a possible loss of capital in the event of disruptions.
Need to know how to code or understand the concepts of trading, indicators, etc.
Need of high-end resources to create, backtest and run trading scripts.
How many of us make use of Algorithms to trade and what are your favourite trading strategies? Share in the comment box below
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Investor
ONEUSDT TECHNICAL ANALYSIS The candles break out and open close above down trendline, not only that we got some signals from @EngineeringRobo as well. How about MA? Of course they are changing to direction as well and MA50 give us attention. Shall I say more? We may earn something. Let’s follow our chart closely.
“NFA”
Is swing trading more profitable than long-term investment?Look at the image below. Let me give you a small example. This is the real chart of the State Bank of India.
I have coded swing trader in black and long-term investor in blue for your easy understanding.
In the first scenario, both the swing trader and the long-term investor bought SBI at the same level.
After a month the swing trader sold his holdings and made 60% on his capital of 1 lakh. Now he has 1 lakh 60 thousand. But the long-term investor didn’t sell.
Again the prices of the stock went down and the swing trader got an opportunity to buy in dip. The swing trader sold his positions and made 36% this time. Now he has (1 lakh 60 thousand) + 36% that is 2 lakh 17 thousand.
This time the long-term investor sold his holdings and made 64% total. He has now 1 lakh 64 thousand.
Everybody trades the swings. Nobody buys in dip and sells in the dip. That is just foolishness. Some people trade the larger time frames and some people smaller time frames.
going long on goldim using the 15 minute time frame to show you guys that i scaled all the way down from the 4 hour. on the 4 hour you see the bulls trying to take over. then on the one hour you have 3 nice bullish candles which that confirmed to me that the bulls are dont yet. I scaled to the 15 minutes to get a better take profit on this back testing trade
BTC watchingSpent a bit of time during the drop, playing on the charts.
Nothing new to see, as expected, as per the streams and video updates recently.
The Textbook Wyckoff Schematic.
Lovely little move.
To our Discord Community! Thanks for all the support. Been an awesome couple of days!
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
DESCENDING TRIANGLE ICP/USDTHello guys, here we have a descending triangle in ICP/USDT 1HR, i saw it late so i couldnt post it and operated it neither, but i post it now for educational purpose, so you can see how a good descending triangle looks like.
If you would have opened this trade at $184.72 and the price hitted take profit at $169.91, you would had win $14.81 per coin buyed.
Leave me a comment below with your opinion about this triangle and ICP.
Take care XOXO.
GBPCHF BIG BUY - PULL UP WHALE SEASON!GBPCHF CLEAN BUY COMING UP!!!!!
Wait for complete drop to zone on support levels look left, find engulfing candle stick to push back up, wait for confirmation on macd to fully reverse. There are multiple buys coming up to take this currency to the weekly push up of 682 pips +!!!!!!
COMMENT YOUR THOUGHTS WOULD LOVE TO HEAR FROM EVERYONE LETS GOOOOOOO!
US30 FORECAST 4.29.21Good evening. This is my markup for us30.
Fun fact: Currently learning candle stick patterns. tonight homework assignment is to identify 3 of the candle stick patterns we went over today. We are having, what we call a 3 pair challenge. Where we markup 3 pairs. adding in the candle stick patterns was a added bonus. Let me know how the charts looks and give me some feedback. Send 3 pair winning vibes only my way. Thank you !!
Markup was done on the 1hr to get support and resistance zones.
fib. was placed on the 15min and the 1hr. they both matched up beautifully.
When price breaks out and closes below my .236 and gives me selling vibes. I will do just that.
$OBLN PT 14Obalon Therapeutics, Inc., a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat people with obesity. The company offers the Obalon Balloon System designed to provide weight loss in patients with obesity. Its Obalon Balloon System comprises of a swallowable capsule that contains an inflatable balloon attached to a microcatheter; the Obalon Navigation System console, which is a combination of hardware and software used to track and display the location of the balloon during placement; the Obalon Touch Inflation Dispenser, which is a semi-automated, hand-held inflation device used to inflate the balloon once it is placed; and a disposable canister filled with mixture of gas. Obalon Therapeutics, Inc. was incorporated in 2008 and is headquartered in Carlsbad, California.
US 30 , Gillionaire Corporate AnalysisHey for every one , if you have a different ideia , tell us on comments.