Algorithmic Trading - An Introduction

Reports show that in 2006, 33% of all equities traded were done using algorithms, this number increased significantly to 73% in 2009 and is estimated to be more than 85% today. The likes of Goldman spend millions of dollars developing algorithms to do the trading for them.

The good news is algorithmic trading is now available to the smaller prop trader as well. These are called secondary algos as the primary algos are what drive the market. The trader using secondary algos is able to make money though the volume they trade is not enough to change the market trend. This video shows the benefits of trading with TUI Trading's algo.