Trading Story: Trading Interviews, Tips & Inspiration For Newer Traders

90 - What is Algorithmic Trading?

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Sinopse

Algorithms are everywhere. Algorithms are running grocery stores like Walmart with air conditioning controlled from corporate in Bentonville, Arkansas. They’re help determine what you’re likely to buy next on Amazon.com and serve you relevant ads just before you buy that trading book. Perhaps the most ubiquitous algorithm is Google’s. Google’s algorithm, in theory and according to their engineers, attempts to provide the best search results for their users search query and even un-typed intent. So algorithms are everywhere. It should not be surprising to find algorithms at work in the markets. But it may not be something you think about much. That said, it is something you should think about because those same markets where you and I trade are affected by trading algorithms every day. Sometimes dramatically.