Leveraging Blockchain and Cryptocurrency in Algotrading

Leveraging Blockchain and Cryptocurrency in Algotrading

Capital Markets CIO Outlook | Monday, February 04, 2019

Algo trading is generally used in the field of high-frequency trading (HFT), wherein a huge number of trading orders has been placed in multiple markets with high processing speed along with automating their business strategies. There involve two types of critical constraints during the buying and selling process—technical parameters and fundamental analysis. The fundamental factors deal with macroeconomic constraints of the present economy and events triggered through the instrument. Whereas, technical parameters explain the mathematical function such as volume, time, and built-around price. These features enhance the product value in the market along with profitability.

Before investing in a business and making payment to obtain the required significant permissions, it’s better to pre-check about their temperament and interest to run an e-commerce trade. The managed account is proven to be an idealistic approach to enhance one’s determination and provide numerous advantages, such as simplicity and minimal cost. Also, instead of investing on an investment advisor, it is better to get started with interactive brokers, family and friends programs, or a trader who is having a vast amount of experience in the particular sector.

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In a review done by Credence Research in 2017, a market research consulting firm, it is shown that global algorithmic trading software’s market value is increased to $1.67 billion, indicating the growing faith of investors in software deployment. With respect to these incidents, it is assumed that the market value for algorithmic trading software will further increase to $26.1 billion by 2026. Presently, algorithmic trading for the stock market by far leads the overall market value segment and can expect to be successful in the upcoming future. The catalyst is a powerful algorithmic crypto-asset investment platform and infrastructure which empowers users to develop and implement new strategies without having to worry about data storage/streaming mechanics, exchange-specific order entry codes and other tedious obstacles.

SEBI recently appointed an advisory committee called the Financial and Regulatory Technologies Committee (CFRT) to research on blockchain technology and other technologies that have created waves in the field of fundraising, asset management, and post-trade settlement. Traders can find it hard to know what parts of their trading system work and what don’t work because they can’t run their system on previous data.

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