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What are the benefits of algo trading?


  • High-speed execution: it executes trades in a fraction of a second after analysing multiple decision parameters. You will never miss a trading opportunity again.
  • Helps with HFT: High-Frequency Trading (HFT) involves carrying out high volumes of trades within split seconds to make gains from market opportunities. The success of such trades is affected by the bandwidth of your connection and the speed of execution. Algorithmic trading makes such trades possible.
  • Allows backtesting: Platforms like Tradetron offer backtesting engines that allow you to test your algo strategies with real-time historical data. This facility is beneficial as it allows you to remove any flaws before you go live. It will also provide you with deep insights to improve your strategies. 
  • Reduced transaction costs: With Algo trading, you don’t have to spend much time researching and monitoring the markets. The drastic reduction in time taken to execute trades saves you the opportunity cost of constant monitoring  
  • Discipline-based trading: Algo trading helps in rule-based trading and avoids emotion at the time of trading.  
  • Marketplace for all: You can choose a strategy based on your requirement, Tradetron provides you marketplace where numbers of strategies are available for every kind of market like equity cash, future, option, currency etc. 
  • Test before you trade:  To avoid any kind of hesitation regarding algo trading you can do paper trading before you deploy the strategy into your live account.
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