Algorithmic and high frequency trading – the future of FX market analysis?

Algorithmic trading

A program, or algorithm, is simply used to enter orders to trade computer programs in the market, a computer algorithm calculates input such as time, price, and quantity of order to be made, and these systems are designed to operate without humans. intervention.

They can be long-term or short-term, but most are short-term and usually want to make a day’s profits quickly. The logic behind them is that they can detect price differences and profits and not be dependent on emotions unlike humans and save time for the operator while they run automatically.

High Frequency Trading AHT

The term High Frequency Trading (HFT) basically means “trading with a system focused on the speed of execution”. HFT systems can decide to run and sort within a second and are used by many organizations. The idea is to put the order in front of the crowd and take advantage of the price discrepancies and make money from them. The idea is not to execute orders quickly but to make them at high volume so that the system can liquidate the trade quickly. All trades are usually closed in minutes or hours and no position is usually maintained overnight.

Isn’t everything so impressive and the future of commerce?

As an experienced trader I would say that people have tried to outperform the market since the beginning of trading and no one has succeeded yet and the reason is obvious is that markets do not move to mathematical models and a computer cannot think that it can only react. A computer can react to changes and does not anticipate them; so a simple system will work better than a sophisticated algorithm.

New names for losing forex strategies

Algorithmic trading is just another word for robot trading, as it has lost a bit of flavor due to the huge number of systems sold for public consumption with fake money-losing routes.

It is more ridiculous to trade high frequency Forex which emphasizes that nano-second orders can outperform the market and make quick profits. All of this is to ensure that transaction costs are so high that there is no chance of making money. Wasn’t that first called scalping or day trading? Of course, these names are also not the result of systems that have a monthly taste, sold and lost money, so traders need to find a new name to capture the public’s imagination.

Playing the market with the computer is nothing new and algorithmic and high frequency Forex trading is just the latest hype that surpasses the market but is lost by users.

How to Win Forex Trading

If you want to earn in forex trading, follow the old career of making money, which is to learn the basics that are easy to learn and then you can think for yourself and enjoy successful Forex trading.