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In 2020, at the start of the pandemic, the markets crashed massively, up to 13% in a single day.
Many say the single-day falls would have been much less had computers not been involved.
But then, you can't convince investors to give up their computers. They have incredible advantages.
Besides being incredibly fast, computers help investors remove biases and emotions, track metrics, analyze other traders, and much more.
The best trading strategies are top secrets.
So far in this write-up, whenever we've mentioned 'investor' we mean large institutional investors - hedge funds, mutual funds, banks, etc.
What about individual investors?
Since the 2000s, computers have gotten incredibly cheap - and therefore personal.
This has enabled many individual investors to try to use their personal computers in investing.
To write algorithms, you'd have to be a software engineer or know how to write software code.
Python is a very popular coding language amongst traders these days.
But there are lakhs of coders in our country. So it is picking up.
Algorithmic trading was first allowed in India in 2008 - institutional investors at first - but opened to all soon after.
Are there any advantages to this?
It depends.
If you are a long-term investor, algo investing doesn't really have any advantages over regular investing.
But if you are into day trading, it could help you.
But remember, it 'could'. Not 'will'.
It's not an easy fight.
A laptop will be competing in the market against some pretty powerful computers owned by institutional investors.
It really depends on how you use your computer.
If it is just for speed, it is impossible for a personal computer to beat an institutional investor's computer.
But trading works in many ways - not just on speed alone.
Day trading is anyway incredibly difficult unlike long-term investing.
Most people who read indian-share-tips.com are individual investors - and most don't really need algo trading.
But it still is a fascinating topic.
Computers invest more than we do!
With us, you just require to follow our bank nifty option tips and no need to get into any complications and make good profit upto 30% intraday.
