Algorithmic trading uses a computer program that follows a defined set of instructions to place a trade.
When it comes to investing, research has shown we are our own worst enemy. We buy to follow the crowd and we sell when we shouldn’t. Even the best investors can let their emotions derail their strategy.
An algorithmic model eliminates that problem.
The Capital 19 Algo Portfolio is a systematic, research driven investment system that we have coded into the computer. The system scans the market and current holdings every evening and decides if any changes are required to the present portfolio.
In this way our own cognitive bias cannot influence the buy and sell decisions.