IG offers algo trading through its partnerships with the ProRealTime and MetaTrader 4 (MT4) platforms. ProRealTime is a leading web-charting package that offers over 100 indicators and allows you to build your own algorithms to execute 24 hours a day.
On this Page:
In its most basic form, algo trading refers to the process of automating your online trading activities. Algo trading software is usually based on cutting-edge technologies like machine learning and artificial intelligence. The technology is tasked with scanning the financial markets on a 24/7 basis.
This might include specific asset classes or a range of financial instruments. For example, while a bitcoin robot like Bitcoin Code focus exclusively on bitcoin trading, some algo trading platforms cover forex, stocks, crypto and commodities. Either way, the overarching concept is that algo trading takes away the need to perform your own technical analysis.
Once the algorithmic trading software finds a potential trading opportunity, it will then do one of two things. The first possibility is that the algo trading platform will send you a real-time notification with details of what the software has found. This will come in the form of a trading signal, meaning that you will be provided with the required entry and exit orders.
For those of you looking for a fully automated end-to-end process, other algo trading platforms will place buy and sell orders on your behalf. If the algorithm is successful in what it does, you could potentially earn income in a passive manner, although there’s no guarantee that will happen.
Some online brokers, such as eToro, offer copy trading tools that allow you to copy the trades of other traders. While these are different from algo trading bots, they are still algo trading in the sense that the copy trading software is based on algorithms.
Delta in Orderflow Trading
Cumulative Volume Delta – Regular divergence
Lack of aggressive buyers/sellers
Cumulative Volume Delta – Absorption
Cumulative Volume Delta – Hidden divergence
Single Bar Delta Divergence
Limit Driven Breakout