Start with market data
A systematic process requires consistent inputs. Price, volume and derived market information can form the foundation of trading rules.
Algorithmic trading uses predefined rules and market data to systematise parts of the trading process. Marketdata provides Australian traders with ASX-focused data, screening and analytical tools for developing a more structured approach to the market.
Algorithmic trading is the use of computer-defined instructions to analyse markets or perform trading-related actions according to predetermined rules. Those rules can incorporate factors such as price, volume, technical indicators, timing and risk criteria.
A systematic process requires consistent inputs. Price, volume and derived market information can form the foundation of trading rules.
Convert parts of a trading methodology into explicit conditions that can be evaluated consistently rather than subjectively.
Rules can be used to identify securities meeting specific market or technical criteria for further assessment.
Systematic screening can help narrow a large ASX universe into a smaller group of potential setups.
A trading system should consider risk criteria and position controls rather than focusing only on entry signals.
Systematic approaches can be reviewed against defined criteria so traders can evaluate and refine their process.
Algorithmic trading is not simply about making trades faster. Its core advantage is the ability to translate a methodology into a structured and repeatable sequence of decisions.
Collect the price, volume and market information required by the strategy.
Evaluate market data against predefined technical or quantitative conditions.
Identify when a security meets the criteria established by the trading methodology.
Apply risk rules and determine what action, if any, should follow the signal.
Combine ASX market screening, technical indicators, charts and market information in a data-driven environment designed for active traders and investors.