Algorithmic Trading#
Algorithmic trading, also known as algo trading, is the use of computer programs to execute trades in financial markets. Our approach to algo trading is to leverage the power of machine learning and technical analysis to identify optimal entry and exit points for trades, while minimizing risk. This allows us to provide clients with accurate and timely investment recommendations, tailored to their specific investment goals and risk tolerance.
Our approach to algo-trading#
Our approach to algo-trading is based on programmatic technical analysis strategies integrated with advanced machine learning algorithms that analyze vast amounts of financial data to identify patterns, trends, and opportunities in the market.
In our platform, each trading strategy is defined as a set of rules that are programmed in machine language to automate the trading process. These rules dictate when to open and close a position in the market. By using these pre-defined rules, our platform executes trades automatically, reducing the need for manual intervention and potentially minimizing the risk of human error.
As previously mentioned, the process of trading involves opening a position and closing it later. Both the entry and exit points are determined by a variety of parameters and states that can be manipulated or controlled by the trader. The entry point refers to the price or condition that triggers the opening of a position, while the exit point is the price or condition that triggers the closing of a position. These points can be adjusted based on various factors
Entry Point#
Technical analysis integration with machine learning models to recommend entry points for trades when specific criteria are met. These criteria are programmed into the system and are designed to identify market trends and other indicators that may influence the price of a particular asset. By using these entry points, traders can potentially improve the accuracy of their trades and increase their chances of success.
In addition, our platform offers clients the choice of (paper)trading in either margin or spot mode.
Attention
Our platform does not facilitate borrowing money or actual trading. We provide assistance to help traders make informed decisions regarding their portfolios using algorithmic trading strategies and machine learning models.
Spot Trading:
Spot trading, also known as cash trading, is a type of trading where assets are bought and sold on the spot or immediately, with delivery taking place within a short period of time. In spot trading, the asset is sold at the current market price, which is determined by the forces of supply and demand. Spot trading does not involve the use of leverage, unlike margin trading.
In spot trading, the trader must have sufficient funds to purchase the asset outright, without the need for borrowed funds. Spot trading is often preferred by traders who do not want to take on the additional risk associated with margin trading. However, spot trading may also limit the potential returns for the trader, as there is no leverage involved.
Spot trading is common in a variety of financial markets, including foreign exchange, commodities, and cryptocurrencies. It allows traders to quickly buy and sell assets at the current market price, and can be a useful strategy for short-term trading or for taking advantage of market volatility.
Margin Trading:
Margin trading is a type of trading where the trader borrows funds from a broker or platform to increase their buying power and potential returns. When trading on margin, the trader is required to deposit a certain amount of collateral, which serves as a guarantee for the borrowed funds. This collateral is typically a percentage of the total trade value, known as the margin requirement.
Margin trading can amplify both profits and losses, as the trader is essentially borrowing funds to increase their exposure to the market. If the trade goes in the trader’s favor, the potential profits can be substantial. However, if the trade goes against the trader, the losses can be equally significant, and the trader may be required to deposit additional collateral to cover the losses.
Margin trading can be a high-risk, high-reward strategy, and should be approached with caution. Traders should carefully assess their risk tolerance and financial situation before engaging in margin trading.
To put it simply, in our application, spot trading involves buying an asset first (LONG position) before selling it later. On the other hand, margin trading allows you to sell an asset first (SHORT position) and buy it back later, if you believe that the asset’s price will decrease. It’s important to note that margin trading involves borrowing funds from a broker to increase your buying power, which comes with additional risks.
Tip
Spot: Only LONG ⬆️ positions
Margin: Both LONG ⬆️ & SHORT ⬇️ positions
Exit Point#
In our case, the exit strategy is determined by three key factors: stop loss, risk-to-reward ratio, and trading budget mode.
Stop Loss: Stop Loss (sl) is a risk management tool used in trading to automatically close a trade at a specific price level to limit potential losses. It is a pre-determined price level set by the trader when they enter a trade, and if the market price reaches that level, the trade is automatically closed to prevent further losses.
In our platform, every time a trade is initiated, a stop loss order is automatically generated for that particular trade, as well as Take Profit (tp) limit. Our platform offers you the flexibility to choose between two methods for obtaining stop loss limits based on your preference and trading style:
Statistical Method.
Technical Analysis Method.