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ALSI

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Not applicable
Something Ive learned about the ALSI over the past month, is that there are a lot more Algo traders on the market than I thought.
You cant see them on SBK because the connection is too slow but using other brokers (that update in milliseconds) you often see bids and offers appear and dissappear in seconds.

Also having spoken to someone whos traded the ALSI for several years now hes also confirmed the presence of these guys have increased dramatically over the past couple of years.

Just never knew they were there.

Just a useless bit of information to keep one busy on a slow day...
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7 REPLIES 7
SimonPB
Valued Contributor
there were always algo traders, but the HFT is very new as they only arrived after the JSE moved their servers back to JHB in July
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Dr_Phopho
Contributor
What are algo traders?
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SimonPB
Valued Contributor
system traders straight into the market from excel or the like, so market makers etc.
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Not applicable
An algo trader, in a nutshell, is a computer program that does the trading for you, based on a set of rules, like go Long everytime stochastics is below 20 with a 50point stop loss.

This has been very common in Forex, thats why you'll see these systems on the internet you can buy that guarantees 100% returns (they are usually fakes though).
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Rams
Super Contributor
But, still, it's all based on data we can all see, so it's not a crystal ball
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Rams
Super Contributor
15 min trend down...will be watching the 33600-33664 level for trend reversal or short entry if "gap" closes.
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Rams
Super Contributor
and short it is...
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