No one is born a trader. But with proper training, one can learn how to make systematic trading decisions that give them better odds in making consistent profits in the long run. In the past ten years, we have seen the cost of buying computing power has come down dramatically. And the recent proliferation of the internet, mobile and cloud computing just means the traditional information asymmetry between different investors have narrowed. And those who possess superior IT knowledge can access and process information faster. A human trader can never trade faster and more accurate than a computer. Algo Trading is no longer an exclusive technique used by institutional or high net-worth investors.
Our belief is anyone who is willing to learn how to use a computer can be trained to be a program trader/investor.
The objective of program trading is to trade based on a well-defined set of trading rules. One needs to translate information into a format that a computer can analyze and process. Theoretically, one can translate fundamental data into numerical inputs, and then design trading rules based on those numerical inputs. In technical analysis, we can rely on the historical ‘traded price and volume” which are already in numerical format that a computer can easily understand.
Algo trading can avoid human fear and greed to make biased and non-optimal decisions in trading. For instance, we always hear retail investors tend to manually cut-loss at the lowest level and chase-in to purchase at the highest price. We believe that in short and medium term, technical force will drive the direction of markets. By algorithmic trading, we can do both short term (e.g. intra-day) and medium term trading based on immediate price action and traded volume, with pre-programmed trading instructions and without human intervention.
