General Trading Chat

TraderRavi

low risk profile
from the article
The key objective of algo traders is to make absolute returns rather than percentage returns. This investment philosophy is quite contrary to the traditional manual trader — who tries to average their position by buying stocks when the market dips.

what is the meaning of this para , could not understand :confused:
 

LivetoTrade

Well-Known Member
from the article
The key objective of algo traders is to make absolute returns rather than percentage returns. This investment philosophy is quite contrary to the traditional manual trader — who tries to average their position by buying stocks when the market dips.

what is the meaning of this para , could not understand :confused:
"program will aggressively double- or triple-up the bet if certain other levels below it are breached"
 

arsh22g

Well-Known Member
from the article
The key objective of algo traders is to make absolute returns rather than percentage returns. This investment philosophy is quite contrary to the traditional manual trader — who tries to average their position by buying stocks when the market dips.

what is the meaning of this para , could not understand :confused:
They don't have a concept of capital utilised on a particular day. E.g. a manual trader with Rs 1 Lakh making Rs 500 a day has a return of 0.5% (percentage return), but an HFT has more or less unlimited pool to take advantage of market inconsistencies whenever these present themselves, without worrying so much about averaging their buy/sell prices when markets dip/rise. Their time frame is very small and is moving second by second.

Trader bonuses are also based on absolute return rather than percentage with a slab-like progressive structure.
 
from the article
The key objective of algo traders is to make absolute returns rather than percentage returns. This investment philosophy is quite contrary to the traditional manual trader — who tries to average their position by buying stocks when the market dips.

what is the meaning of this para , could not understand :confused:
Algo and HFT traders trade on small inconsistancies but on larger quantity and larger number of trades.They do quick in and out trading and though per trade profit is small, they concentrate on making bigger absolute profits due to larger volumes and lower transaction costs in their markets. They dont hold positions for long time, average etc...they always book small profits more number of times to make higher absolute amount of returns.

ST
 

amitrandive

Well-Known Member
I am not aware of .... if it is so .... somebody please enlighten us ...

FII / DII ... all have to route through BROKERS in Indian stock exchange.

Do any broker platform provide more than best 5 price quote.. ?
Ofcourse they do.Check the snapshot of a trading platform used by HFT in the US.The bottom left corner indicates the number of bids and asks.Check the list of platforms available to them.
Many reputed Indian software firms design algos and customised trading platforms for FII's.




 

Similar threads