Why Algo Trading Fails?

Though, computers perform better than humans with zero errors and not become tired. But every technology-based system has drawbacks and hurdles. Similarly, algorithm trading sometimes also fails in the stock market and not gives the expected returns.

There are many reasons why Algo trading fails, like algorithm strategy is not tested properly before the implementation. Or accurate data is not used to develop the stock trading algorithm software that fails to give profits to traders, let’s find out more.

Inaccurate or Insufficient Data: While developing such AI-based models a huge amount of historical data is used to train the model through a machine learning algorithm. If data is not accurate the strategy will not work properly causing unexpected transactions or huge losses in the market.

Read More www.moneysukh.com