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Scalping vs Momentum: Which Algo Style Suits You?

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  Scalping vs Momentum: Which Algo Style Suits You? 🔹 Introduction Quick intro to algo trading and why strategy selection matters. Mention that scalping and momentum are two popular styles used by algo traders. Promise the reader: "By the end, you'll know which one fits your trading goals." What is Scalping in Algo Trading? ✅ Definition: ·          Ultra-short-term strategy ·          Aim: Profit from small price movements ·          Multiple trades per day (even per minute) ⚙️ Characteristics: ·          High trade frequency ·          Low profit per trade ·          Requires fast execution , low latency ·          Works best with automated bots & strong internet speed 📉 Id...

Who Is Kevin J. Davey?

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  Who Is Kevin J. Davey? Background & Credentials Aerospace engineer turned full-time systematic trader , with nearly 30 years in markets and 13+ years trading professionally. Earned top ranks (1st or 2nd) in the World Cup Championship of Futures Trading from 2005–2007, producing eye‑popping annual returns of 148%, 107%, and 112%.  Applies Six Sigma, statistical process control, continuous improvement, and design-of-experiments skills drawn from aerospace quality assurance to design his trading systems Books & Publications Kevin is the author of several well-known books: ·          Building Winning Algorithmic Trading Systems: A Trader’s Journey From Data Mining to Monte Carlo Simulation to Live Trading (2014) ·           Introduction to Algo Trading: How Retail Traders Can Successfully Compete With Professional Traders (2018) ·   ...

How Algo Trading is Transforming Stock Market Trading?

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  How Algo Trading is Transforming Stock Market Trading? Introduction Stock market trading has seen massive changes over the last few decades. One of the most significant transformations is the rise of Algorithmic Trading , or Algo Trading . What is Algo Trading? Algo Trading involves using computer programs to execute trades at high speed and accuracy. These programs follow specific rules based on: ·          Price ·          Timing ·          Volume ·          Market indicators For example, an algorithm can be programmed to "Buy 100 shares of Company A if the price drops below ₹500 and the RSI is under 30". Key Ways Algo Trading is Transforming the Market 1. Speed and Efficiency Algorithms can process market data and execute trades in microseconds — far quicker than any human. This speed advantage a...

Famous Algo Trading Writers

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  Famous Algo Trading Writers: Who is Ernie Chan? A quantitative trader , author, and data scientist. Expert in algorithmic trading and machine learning for finance . 🎓 Education & Early Career Ph.D. in Physics from Cornell University . Started as a researcher at IBM in machine learning. Moved to finance: worked at Morgan Stanley and Credit Suisse doing quantitative research. 💼 Professional Career Worked at hedge funds like Millennium and MANE. Later started his own quant fund: QTS Capital Management . Founded PredictNow.ai , a machine learning platform for risk management . 📚 Books He Wrote (Very Popular in Algo Trading): 1.      Quantitative Trading – How to build your own algo trading system. 2.      Algorithmic Trading – Real-world strategies explained. 3.      Machine Trading – Advanced machine learning in trading. ⚙️ His Tra...

How Algorithms Are Used to Place Trades Faster in Algo Trading

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  How Algorithms Are Used to Place Trades Faster in Algo Trading Pre-defined Rules Set by Trader You (the trader) decide the conditions to buy or sell a stock. Example: “If Nifty goes above 20-day moving average, then BUY” “If RSI is below 30, then SELL” These are called trading strategies or rules . Algorithm Monitors the Market 24/7 The algo system is connected to live market data . It continuously scans the market every second for the conditions you set. Unlike humans, it doesn’t get tired, distracted, or emotional . Instant Execution (in milliseconds!) Once your conditions are met, the algorithm automatically places the order . Example: Buy 50 shares of Infosys the moment the price touches ₹1,500. 💡 Speed Advantage: Manual traders may take 2–3 seconds to react. Algos take less than 0.01 seconds to place the order. No Emotions, Pure Logic ·          Humans panic, ove...