Algorithmic Trading Example

To better know how algorithmic trading works in the stock market let’s take an example.

Suppose you want to set the criteria of buying the XYZ Company’s 100 shares when the price reached Rs 500 and selling shares when the price goes above Rs 550.

In another case, if you want to sell 100 shares of XYZ Company if its 20-day moving average goes below the mark of 200 or buy 100 shares of a company when its 100-day moving average moves beyond the 200-day moving average. Or you are looking to buy 100 shares of XYZ Company if it goes above Rs150 before the market closes.

While considering all such factors if want to execute this transaction manually, you have to stick on your computer screen throughout the day and track the stock price and other parameters.

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