Market Data Analysis For Algo Trading
Algorithmic trading ( algo trading ) is a computer-driven approach to financial markets where automated algorithms rather than humans execute trading decisions. These algorithms rely on a set of fixed rules, theoretical models, and past data analysis to make the fastest and most accurate trading decisions. Algorithmic trading aims to exploit market inefficiencies, exploit arbitrage opportunities, and manage portfolios with optimal risk and return profiles. An essential feature of algorithmic trading is the analysis of market data. Algorithmic trading involves using computer algorithms to automate trading decisions based on predefined criteria. For the development and execution of successful trading strategies, it is important to have efficient market data analysis. Here's a step-by-step guide to analysing market data for algo trading. Market Data Analysis The market data analysis for algorithmic trading is as follows; 1. Data Collection: Market data sources: Identify and collect r...