Economy
All You Need To Know About Algorithmic Trading
There are now more options to improve or expand existing apps due to the rapid advancement of computer science and communication technology. The current developments have opened up fresh trading avenues.
Trades are placed using a computer program that follows a predetermined set of instructions (an algorithm). This kind of trading is also known as automated, black-box trading, or algo-trading. Profits may be generated at a pace and frequency inconceivable for a human trader to achieve in principle.
Just because it’s computer-driven doesn’t imply no one is involved. As a result of automated trading, human involvement has been shifted to a more back-office position, where new alpha-seeking techniques are developed on a regular basis.
High-frequency trading (HFT) is the most common kind of algo-trading today, and it relies on preprogrammed instructions to place a large number of orders quickly across a variety of markets and decision factors.
In this article, we’ll provide you with information on what are the main things that every trader should know about algorithmic trading.
How does algo trading work?
Pre-programmed instruction is used in algorithmic trading to execute transactions. Input characteristics like price, time, volume, and more are taken into consideration by these laptop applications. In order to make use of the processing power and speed of modern computers, several types of systems are employed. Automated trading is primarily a rapid, reliable, and accurate technique of placing orders. However, not everyone can apply this strategy, and some people may have doubts about its efficacy.
Because the decision to buy or sell is based only on the composite programs, algorithmic trading is a generally recognized method. There is no human intervention in making the transactions, which eliminates the influence of emotions. There are several ways to learn more about the way algorithmic trading works. One of the most common ways for investors is to visit an education section of Elite Currensea, where they can get more information about algo trading and its benefits. In addition to that, the section allows traders to generate trading strategies based on AI. Computers are better at completing tasks quickly than people are. Depending on the specifications, it can execute and monitor a variety of stocks at the same time.
There are no trades left unattended, thus it is quite skilled and resourceful. When traders take a break, the robot takes care of online share trading orders.
As a primary benefit, algorithmic trading removes human emotions from the trading process. Trades are carried out in accordance with a predetermined set of guidelines. Human trading, as opposed to algorithmic trading, is more susceptible to illogical trading choices due to human emotions. Thus, algo-trading often pushes traders to avoid taking on more risk than they can manage in order to prevent feelings of uncertainty.
For those interested in learning about algorithmic trading, the online education market has grown rapidly in the last several years. Getting into this field is now feasible without having to go through the lengthy academic path (8-10 years).
What are the main pros of algorithmic trading?
Individual involvement is minimal when it comes to algorithmic trading. Orders made on the basis of various technical indications are automatically distributed using digital means. Simple data access is all that is required for these gadgets. By not having to worry about losing money, they are safer than human dealers. Another advantage of these systems is that they may be quite profitable. However, there are several difficulties to overcome. Basic computer abilities are required for success in algorithmic trading.
Algorithmic trading’s performance is heavily reliant on precision and timeliness. The margin of error in algo trading is often extremely large if humans are involved. It’s possible for a computer to conduct transactions under a set of instructions, but this isn’t the case for algo-trading banks. As a result, strategic thinking is emphasized in order to help businesses make better, more accurate trade choices.
Moreover, there is no opportunity for traders to be influenced by their emotions since the tactics are pre-formulated. This means that once the pre-specified goals are satisfied, the deal is automatically performed, and the trader is left with no choice except to accept it as is. Over- and under-trading are kept in check by algo trading. As a result, there is no tolerance for error or divergence from the original trading plan.
A trader’s job is to identify the weak points in their trading system and devise workarounds as early as possible in order to prevent more losses. Trading algorithms allow traders to back-test their trades using historical data and compare them to the current market conditions. Using this approach, traders may determine for certain if their deals would have turned out identically.
Trading algorithms used in algo trading execute deals without human intervention. In response to market changes, the algorithm creates orders as soon as they are met. The trading process relies heavily on the quickness of entry and exit. Even a delay of a few seconds might result in losses. Better entry and exit speeds allow traders to catch market moves at their precise moment of entrance.
With the advent of automated trading, traders now have the chance to experiment with a wider range of trading platforms. Individuals and businesses may effectively and quickly exchange huge volumes of shares. Market participants may thus acquire a large number of shares and then sell them nearly immediately for a significant profit.
Algorithms and computers are used in algo trading. Because of this, executing many trades and strategies simultaneously becomes quite simple. Humans just could not have accomplished this.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.63 per cent in Week 18 of the 2025 trading year, supported by gains posted by five stocks on the platform.
Just like in the previous week, there were four trading days last week due to the Workers’ Day holiday, and over these days, investors carried out 130 deals in 19 stocks.
Data indicated that the value of transactions went down by 98.9 per cent to N105.9 million from the preceding week’s N9.9 billion and the volume of trades shrank by 99.6 per cent to 14.5 million units from 3.9 billion units in the previous week.
The most active stock by value in the week was FrieslandCampina Wamco Nigeria Plc with N70.7 million, Afriland Properties Plc recorded N13.6 million, Geo-Fluids Plc traded N13.0 million, Capital Hotels Plc posted N6.0 million, and IPWA Plc reported N2.0 million.
Geo-Fluids Plc was the most traded stock by volume with 6.4 million units, IPWA Plc transacted 4.0 million units, FrieslandCampina Wamco Nigeria Plc recorded 1.9 million, Capital Hotels Plc traded 1.2 million units, and Afriland Properties Plc exchanged 0.902 million units.
The NASD Unlisted Security Index (NSI) added 20.60 points to settle at 3,289.66 points compared with the 3,269.06 points recorded in the preceding trading week, and the bourse’s market capitalisation gained N12.07 billion to close at N1.926 trillion compared with the N1.914 trillion posted the previous week.
FrieslandCampina Wamco Nigeria Plc improved by 13.1 per cent to N40.00 per unit from N35.37 per unit, Geo-Fluids Plc appreciated by 11.1 per cent to N2.00 per share from N1.80 per share, Food Concepts Plc grew by 10.3 per cent to N1.29 per unit from N1.17 per unit, Lagos Building Investment Company (LBIC) Plc jumped by 10.00 per cent to N3.08 per share from N2.80 per share, and UBN Property Plc increased by 4.8 per cent to N2.20 per unit from N2.10 per unit.
On the flip side, Afriland Properties Plc dropped 10 per cent to end at N16.00 per share compared with the preceding week’s N17.78 per share. IPWA Plc dipped by 9.1 per cent to 50 Kobo per unit from 55 Kobo per unit, Acorn Petroleum Plc lost 5.9 per cent to close at N1.10 per share versus N1.17 per share, and Mass Telecomm Innovation Plc shed 2.4 per cent to finish at 40 Kobo per unit versus 41 Kobo per unit.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited expanded by 0.27 per cent on a week-on-week basis last week, driven by gains recorded by 52 stocks, led by ABC Transport.
The notable transport and logistics firm posted a 44.87 per cent surge in its share price in the four-day trading week, closing at N2.26.
Legend Internet appreciated by 32.40 per cent to N9.03, Fidson rose by 22.85 per cent to N22.85, University Press jumped by 20.88 per cent to N4.11, and NAHCO flew by 20.17 per cent to N82.50.
On the flip side, Ecobank lost 18.75 per cent to sell at N26.00, Multiverse declined by 18.59 per cent to N6.35, Livestock Feeds crashed by 10.63 per cent to N8.49, Aradel Holdings slipped by 9.86 per cent to N448.00, and Tripple Gee depreciated by 9.60 per cent to N1.79.
Business Post reports that 52 shares gained weight in the week versus 64 shares a week earlier, 37 stocks depreciated versus 27 stocks in the previous week, and 59 equities closed flat versus 57 equities in the preceding week.
The All-Share Index (ASI) and the market capitalisation improved by 0.27 per cent and 0.28 per cent each to 106,042.57 points and N66.648 trillion, respectively.
Similarly, all other indices finished higher apart from the banking, insurance, AFR Bank Value, MERI Value, energy, Lotus II, sovereign bond and commodity indices, which depreciated by 0.38 per cent, 2.89 per cent, 0.04 per cent, 2.08 per cent, 2.90 per cent, 0.01 per cent, 0.19 per cent and 1.12 per cent, respectively.
The market operated for four days last week because of the public holiday observed on Thursday for the 2025 Workers’ Day celebration.
Despite this, Customs Street witnessed a higher turnover compared with the preceding trading week, as investors bought and sold 2.200 billion shares worth N75.409 billion in 70,329 deals versus the 1.854 billion shares valued at N56.025 billion traded in 51,386 deals a week earlier.
The financial services sector led the activity chart with 1.432 billion equities valued at N30.908 billion in 33,095 deals, contributing 65.09 per cent and 40.99 per cent to the total trading volume and value, respectively, as the ICT industry transacted 230.248 million shares worth N27.453 billion in 4,811 deals, and the consumer goods space sold 166.345 million stocks for N4.708 billion in 8,284 deals.
Fidelity Bank, Access Holdings, and UBA transacted 704.639 million units worth N16.757 billion in 10,466 deals, accounting for 32.03 per cent and 22.22 per cent of the total trading volume and value, respectively.
By Adedapo Adesanya
The sum of N1.48 billion has disbursed by the Bank of Industry (BoI) in loans to 29,000 small business owners in Imo State as part of efforts to drive economic growth across the country.
The Managing Director of the bank, Mr Olasupo Olusi, said this at a town hall meeting on the federal government’s loan scheme for Micro, Small and Medium Enterprises (MSMEs) in Owerri.
Mr Olusi, represented by the bank’s Divisional Head for MSME in the South, said that the loan scheme was intended to address challenges facing businesses in the state, such as access to finance and cost of doing business.
He said that business owners could access up to N5million each at an interest rate of 9 per cent per annum with a three months moratorium and a tenure of up to three years.
He added that the disbursed funds were part of FG’s N200 billion Special Intervention Fund in line with President Bola Tinubu’s prosperity agenda.
He, therefore, urged business owners to take advantage of the opportunity to grow their businesses.
He also urged stakeholders such as the National Association of Small and Medium Enterprises (NASME) and the Nigerian Association of Chambers of Commerce, Industry Mines and Agriculture (NACCIMA) to mobilise their members to be able to access the loan.
“Application is open to the public and the Bank of Industry facilitates the verification of applicants’ data to facilitate disbursement.
“ We, therefore, call on all stakeholders – MSME owners, community leaders, youth groups, women associations, and Local Government authorities to be active advocates of the scheme.
“ It is our shared prosperity and we need to empower our young people to be architects of their own future,,” Mr Olusi said.
Also, the Secretary of NASME in Imo, Mr Ugochukwu Ohaegbu, called on owners of registered businesses to identify with the association for optimal benefits.
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