Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders. Algorithmic Trading The majority of traders lose money. They lose money not because they don’t understand the market, but simply because their trading decisions are not based on solid research and proven trading methods.

Modern Portfolio Theory It was formulated in the 1950 by Harry Markowitz. what is the main idea? A single stock is quite unpredictable or risky: we do not know for certain whether a stock will go up or down. But we may combine several stocks, in order to reduce risk as much as possible. DIVERSIFICATION. when a given value of stock goes down another goes up. Combining assets is the main idea: it is the same as the black-scholes Model.