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Algorithmic trading

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Why trade using algorithms with IG?

  • Remove emotion from your trading

    Reduce the possibility of mistakes based on psychological factors like fear and greed

  • Test your strategies

    Customize your parameters, back-test your strategy against past data, and optimize them

  • Start with minimal programming knowledge

    With ProOrder, you can build strategies using assisted creation tools, or code them from scratch

  • Reduce the risk of human error

    Trades are now timed correctly at a specific price or trigger

What is algorithmic trading?

Algorithmic trading or algo trading in short (also known as automated trading), is the process of using high-speed computers programmed to follow a defined set of instructions for the opening and closing of trades, all based on strategies devised by the human trader.

The software can automatically alert traders whenever trading opportunities that fit into the defined criteria arises, and act on them.

 

Advantages of algorithmic trading

Removing emotions from trading

Creating a trade plan is not difficult, but sticking to it isn’t always easy. That’s where a computer-programmed automated trading system’s role comes into play. By removing feelings from trading, and executing set-ups based on a pre-defined plan, you’ll no longer let emotions become the problem for taking profit too early, or cutting loss too late.

Time saved from monitoring your trades

Automated systems, by its name, saves you the hassle of monitoring your screens all day to look for new trading opportunities, or worry about when to close a position. The time needed to scan thousands of markets for an entry signal is also eliminated.

Ability to review and refine strategies

It is difficult to find a perfect strategy that can withstand the test of time when market conditions constantly change. That’s why it’s important to refine your strategies periodically, even when it’s working well. A key metric to look out for in a successful trading system is the maximum drawdown (max loss from a peak to a trough of a portfolio). Remember, a 50% loss requires a 100% rise to breakeven.

Backtesting

Backtesting is the process of testing the effectiveness of a trading strategy based on historical data before using it for live trading. It’s all about probability. Finding the best strategy for a particular market can help you maximise your probability of success.

How do I start automating my trading with IG?

Using MetaTrader 4 (MT4)

MT4 is a trading platform that is widely used around the world. A key feature of MT4 is the availability of Expert Advisors (EAs) – automated trading systems that can be downloaded and implemented. If you have programming knowledge, can also attempt to write your own EAs and test them on MT4. 

Using ProRealTime

ProOrder, by ProRealTime, is another automated trading solution that is available at IG. With ProOder, you can create, test and modify your own trading strategies. After activating them on your live account, you can even export and share them.

Open an account now

It's free to open an account, takes less than five minutes, and there's no obligation to fund or trade.

Contact us

Our office is open 5 days a week Monday to Friday from 9am to 6pm. Support line is available 24hrs a day Monday to Friday.

+65 6390 5118

Visit our storefront office at 9 Battery Road

You can also email us helpdesk@ig.com.sg