Algo trading has been an important component for many banks in recent months, with the latest hires possibly portending a drying up of supply to meet a growing demand. In any scenario, banks have been quickly scooping up top-tier talent in the algo trading arena, with Goldman Sachs and JPMorgan emerging as the latest players to do so.
One good use may be in the analysis of portfolios. By clustering equities and financial instruments you can get a unique view of the distribution of exposure and risk, and either hedge accordingly or look to maximise the efficiency of exposure to one area of the market.
“Get a crypto trading bot”, said a friend. “You will be swimming in cash”, he said. It was with the ultimate of best intentions that my friend advised me to use a trading bot. They are definitely a great way for crypto trading newbies to start making money and understanding how exchanges and the markets work but are trading bots simple to use? And is it really that easy to make money with them?
Goldman Sachs has already begun to automate currency trading, and has found consistently that four traders can be replaced by one computer engineer.