What is algorithmic trading?

We’re so glad you asked. Algorithmic trading is a way to make better, smarter, more confident online trades. And like every other ground-breaking improvement in history, it has its own story.

It goes something like this:

Not so long ago, to create the simplest “algo”, you needed a developer (or two) to write a program for you, and a powerful computer (expert adviser or robot) to run it for you.

Understanding how this worked is a little technical, but in a nutshell: the developers worked with quantitative analysts to figure out what parameters to use. The algo would then trade for you when the conditions set by the parameters were met.

Cool? Very cool. So cool that these days 90% of institutional trading that happens on the market is performed by algos.

Not so cool is the fact that retail traders (that’s you, probably), still perform 90% of their trades the old-fashioned way. This isn’t just wasting a lot of time. Traders who trade manually also tend to get greedy and overtrade or make revenge trades (i.e. make even riskier trades to win back what they’ve lost).

The upshot?

You guessed it. They end up wiping out their accounts with bad money and risk management. And they do it super fast. 80-90% of retail traders wipe out their accounts within 3-6 months. Like I said. Not cool at all.

90% of institutional trading in the market place is performed algorithmically.

Here’s the cool part.

While algorithmic trading used to be technically and financially beyond the means of just about everyone but big trading floors, today anyone can do it.

With smart algotrading software like Tekton by your side, you can keep up with the biggest and the best without spending a dime. And you’ll be up and trading in minutes.

Sound like something you might be interested in?

That’s what we thought.

Join the club.

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Want real discipline? Start algotrading.

It’s true. The best traders stay disciplined by sticking to their trading plans.

Trading by plan lets you know when to get into a trade and when to get out. (It isn’t an angel’s voice whispering in your ear every time you’re about to get greedy, friends. It’s the plan.)

If you’ve got a plan, it’s easier to stay objective and avoid revenge trading if things go south, as they will from time to time. And you’ll keep your mind focused and decluttered. No emotion allowed when you’re trading, remember? (Unless you’ve just won a trade and it’s party time.)
So, discipline, good. Gut instincts, bad.
The problem is, to practice your craft, you’ve got to actually get in there and play the market. And that means exposing yourself to a whole bunch of psychological obstacles you’ll need to be able to deal with effectively—pressure, fear, anger, uncertainty, etc.—if you want to come out on top.

Afraid of impulse trading? You should be

Not only does trading discipline keep you from doing stupid (i.e. greedy, angry, reckless) things, being consistent with your strategies also teaches you a lot about how the market works. And that’s how you build up the confidence you need to make a business out of trading.

So, discipline, good. Gut instincts, bad.
The problem is, to practice your craft, you’ve got to actually get in there and play the market. And that means exposing yourself to a whole bunch of psychological obstacles you’ll need to be able to deal with effectively—pressure, fear, anger, uncertainty, etc.—if you want to come out on top.

What’s missing from most strategies?

Have you ever noticed the one thing about all the information you find out there these days about trading, you know – the various setups, strategies and systems.

Well, they all seem to put a lot of focus on the actual ‘Entry’ and nobody seems to talk must about the other part of that equation – Which is the ‘Exit’ right?

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