The Head and Shoulders pattern is a technical analysis pattern that is commonly used by traders to predict future price movements in the financial markets. It is a reversal pattern that signals a potential trend reversal from an upward trend to a downward trend. In this blog, we’ll explore the head and shoulders pattern and how it can be used …
Widespread Trading Algorithms
Algo Trading in Financial Markets Trading Algorithms have become a widespread and essential part of the financial market. Nearly every major bank, institutional investor, and insurance company uses some form of trading algorithms in their operations. These algorithms allow for faster and more efficient trades, leading to improved profits and reduced risk. Algorithmic High Frequency Trading One of the primary …
Signal Providers, Robo Advisors, and Us
Investing in the stock market can be a challenging and complex process, but with the right tools and strategies, it can also be a lucrative and rewarding endeavor. Popular tools that investors use to make informed decisions are stock signal providers, robo advisors, and algorithmic trading platforms. Signal Providers Stock signal providers are companies or individuals that provide investors with …
What is Algorithmic Trading?
Algorithmic trading, (also known as robotic trading or automated trading), is the use of computer programs to execute trades automatically based on predetermined criteria. These criteria are often based on technical analysis, which involves using mathematical formulas to analyze past price data in order to make predictions about future price movements. Algorithmic trading is becoming increasingly popular among traders. This …
Getting Started in the Stock Market: Automated Investing
What is the Stock Market? The stock market is where investors buy and sell shares of publicly traded companies. These shares represent ownership. The stock market, also known as the equity market, is a crucial component of the global economy. It provides companies with the capital they need to grow and expand, and it also gives individual investors the opportunity …
Technical Analysis Chart Patterns
Chart patterns are a fundamental aspect of technical analysis, and are used by traders and in algorithmic trading to identify potential opportunities. These patterns are formed by the movements of the price and volume of a security. They can provide traders with valuable insights into the underlying trends and market sentiment. In this blog post, we will discuss some of …
Who Uses Technical Analysis?
Technical analysis is a method of evaluating securities by analysing statistics generated by market activity, such as past prices and volume. Traders and investors often use this method to make informed decisions about buying and selling securities. But who exactly uses technical analysis and why? Professional Traders and Individual Investors First and foremost, professional traders use technical analysis. Major financial …
What is Backtesting?
Introduction Backtesting is the method of simulating a trading strategy using historical data to generate and analyze results without risking any capital. The reason retrospective analysis is so key to a well-balanced trading strategy is that anything that worked well in the past, is likely to work well in the future. Sources of Historical Data Backtesting is reliant on historical …
Stop Losses & Profit Targets
Stop Losses Stop orders use an activation price to execute a trade at a certain, and often calculated price point. They can greatly help limit a traders loss when in a bad position. Stop-losses can be adaptive and executed through different order types. There are three main stop orders, stop market, stop limit, and trailing stop. PeakBot’s automated stock trading …
Technical Analysis
What is Technical Analysis? PeakBot’s automated stock trading software is based on technical analysis. Technical analysis as a trading discipline is becoming increasingly relevant as the industry gets more advanced trading technology. The central belief that technical analysts hold is that the past price action of a stock can provide valuable insight into future price movements of that same stock. …