Four Technologies of Algo Trading in the Crypto Market

Four Technologies of Algo Trading in the Crypto Market

Capital Markets CIO Outlook | Tuesday, April 06, 2021

Traders are now implementing intelligent and reputable auto trading bots. These platforms provide various bots and promote users to build innovations for auto trading consistently.

Fremont, CA: Digital money, or cryptocurrencies, and the advanced technologies that come with it, holds high potentials in trading. Because of the benefits in profit generation and productive investments, many crypto traders are emerging.

Here are four technologies in automated trading in the crypto market:

Deep Reinforcement Learning Trading Strategy

This comprehensive approach uses three powerful actor-based algorithms such as the Proximal Policy Optimization (PPO), Advantage Actor Critic (A2C), and Deep Deterministic Policy Gradient (DDPG).

These technologies allow easy adjustment of placing trades based on the changing market conditions. This strategy's reward mechanism tackles the flaws of ML regression in forecasting market results and measuring probability.

Higher Investments in Surveillance Apparatuses

Surveillance is one of the key practices in the crypto market as it provides more precise and valuable reports of market activities. The data collect enhanced market awareness and enables informed decision making in treading.

Social Trading and Opinion Mining

Using social networks has made trading mechanisms accessible through social trading platforms, which streamlines the processes comprised in the decision-making of auto trading.

These platforms can collect consumer behavior data that political and marketing analysts can implement to make enhanced algo trading adjustments, which can be versatile to the shift and changes in the markets.

High-Frequency Trading (HFT)

HFT is vital in auto trading because of its capability to process a vast number of requests in a snap. Here, large amounts of orders need to be processed in a fraction of a second, thus the need for an increase in speed and accuracy of auto trading bots.

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