How the Future of Crypto Algo Trading Changing Forever?

Andy White, Capital Market CIO Outlook | Thursday, March 18, 2021

The advancement of HFT is critical since one of the key draws of auto trading is its ability to process large numbers of requests quickly. Large numbers of orders must be executed in a fraction of a second in this sector, necessitating an improvement in the speed and accuracy of auto trading bots.

Fremont, CA: Perhaps now is the best time to get involved with the immense potential of digital currency, formally known as cryptocurrencies, and the advanced technology that goes with it. The number of crypto traders is growing by the day, owing to the benefits of profit generation and profitable investments.

Continue reading below to capitalize on the developing developments in the crypto industry and better take advantage of the best crypto exchange for automated trading.

Innovations that improve Auto Trading:

Here are some of the most important developments in algo trading today. Some are taken from presentations provided by top trading experts at the Algo-Trading Innovation Hub.

High-Frequency Trading (HFT)

The advancement of HFT is critical since one of the key draws of auto trading is its ability to process large numbers of requests quickly. Large numbers of orders must be executed in a fraction of a second in this sector, necessitating an improvement in the speed and accuracy of auto trading bots.

Fortunately, 3commas provides auto trading bots and services that are outfitted with cutting-edge technology, saving consumers from the inconvenience of network lags and traffic. Browse its extensive product offering and take advantage of its incredibly low prices.

Deep Reinforcement Learning Trading Strategy

This comprehensive and extensive strategy utilizes three powerful actor-based algorithms, namely the Proximal Policy Optimization (PPO), Advantage Actor Critic (A2C), and Deep Deterministic Policy Gradient (DDPG).

The combined use of these enables the seamless adjustment of placing trades according to the volatile market conditions. The reward mechanism of this strategy addresses the loophole of the ML regression in predicting market outcomes and measuring probability.

Opinion Mining and Social Trading

The integration of social networks to trading has made trading mechanisms accessible, especially to novice traders. This is done through social trading platforms, which simplify the processes and operations involved in the decision-making of auto trading.

From its inefficiency and accessibility, this innovation has gradually gained traction among traders. This popularity enabled such platforms to gather consumer behavior data that political and marketing analysts can utilize to make better adjustments in algo trading adaptive to the shifts and changes in the market. This process is generally called opinion mining.

See also: Top Cryptocurrency Solution Companies