An Introduction To Algorithmic Trading

In the traditional finance system, order books have served traders well. While it serves its purpose, things have changed with the rapid pace of technological advancement. The trading floor has gone online, and every minute and second is the difference between big gains or heavy losses in the market. Having a broker manage the fluctuations in prices can be an enormous task, especially in the cryptocurrency market.In the Digital and Information Age, things have been improved upon. This is through the use of algorithmic trading. As the name implies, this a form of trading in which decisions can be made automatically using algorithms written into software. Many traders are familiar with bots that perform and execute trades on a daily basis. They were one of the original forms of software used in trading automation. This is followed by apps and later with blockchain-based smart contracts.Conditions are written into code and executed on the network. This leaves traders with more time to worry about other things. It saves time and money because an automated system of trading can help traders buy or sell the moment an event occurs in the market. It can also help with risk management, report generation, and scheduling tasks. Traders who rely on the older order book system may stand to lose if they are even a few seconds or at worse, minutes or hours late.The Benefits Of Trading AutomationTo name a few of the main benefits when using algorithmic trading from a development perspective:Use industry standard REST APISupports OAuth for delegated accessAutomates orders through smart contracts and appsProgrammable access to data feeds (oracles)Industry-standard API (Application Programming Interface) allows developers access to supported calls and functions in a familiar setting. This layer of abstraction removes the complexity involved in developing an application from the bottom up when…