Role of Global Datafeeds in Efficient Algorithmic Trading

Learn How Data Feeds Enhance Efficiency in Algorithmic Trading

Discover how real-time data feeds can benefit your trading strategies, also how real-time data enables faster decision-making, reduces errors, and maximises profits

The Role of Data Feeds in Algorithmic Trading

Traditionally, stock market trading relies on fundamental and technical research and of course, the gut instinct. However, when there is a need to execute large trades, it becomes a tedious process. Most importantly, the error margin can be high, resulting in losses.

Algorithmic trading overcomes these drawbacks of manual trading. It depends on real-time data feeds to manage large trades more efficiently and quickly at the best possible price. Let’s first understand the concept and benefits of algorithmic trading before exploring the role of data feeds.

What is Algo Trading?

Algo trading is also known as automated trading or black-box trading. It refers to the use of coded programmes (algorithms) to execute trades automatically in the market without human intervention. These algorithms are a predetermined set of instructions or rules related to price, volume, quantity or timing.

Algorithmic trading has the following advantages:

Processes large volumes of data and trades at high speeds to leverage high-profit market opportunities
Reduces trading errors by eliminating human bias
Identifies markets patterns faster and with accuracy
Saves trading time and thereby, leads to lower transaction costs

Importance of Data Feeds in Algo Trading

Data feeds are a prerequisite for algorithmic trading. Data feeds provide fast and low-latency stock market live data such as prices, volumes and other market parameters. This ultra-high update frequency data is crucial for traders to make real-time decisions to buy or sell. Data feeds ensure that there is a minimum time gap between information available for the algorithmic traders for decision-making. The more instant the information is, the quicker and more accurately trading can take place.

Data feed system collects gigabits of raw data every second from various stock exchanges, news releases, social media and other reliable sources from the web. It also processes market data, company data and global events. Moreover, data feeds also tap into historical data, past market behaviour and future trends to give a holistic view as far as possible.

The algorithms fed into the system perform in-depth analysis through complex mathematical models based on this raw data. The system can also do sentiment analysis which is instrumental in gauging the opinion or consensus of investors about a specific stock in terms of risk.

If traders had to work with raw feeds, they would need a huge network infrastructure and computing resources which is complex, time-consuming and expensive.

In a nutshell, data feeds offer the following benefits for algo trading:

Highly reliable, faster and accurate data
Continuous streaming of real-time data
Identify the best trading opportunities
Access to multiple data points in a single intuitive interface

When it comes to the question of how to use market depth in trading, data feeds can also provide information at level 1, level 2 and level 3.

Conclusion

The speed, quality and accuracy of data feeds are critical to the success of algorithmic trading. That’s why you should always source your data feeds from a reliable After-market stock data provider.

Global Financial Datafeeds is an authorised low latency real-time data vendor of Indian stock exchanges with more than a decade of expertise. Its NSE Stock Api data feed provides the fastest rate update in real-time.

Get in touch to know more.

How to choose right data feed provider for your trading needs

How You Can Choose The Right Data Feed Provider For Trading

Learn how Global Datafeeds are real time market data providers provides to traders for informed decision-making. Discover the features that maximize profits in financial markets.

How to choose the right data feed provider for your trading needs

Trading in the financial markets is a highly rewarding and exciting venture. With the right tools and strategies, traders can make significant profits from fluctuations in asset prices. But to be successful in trading, it is crucial to have access to accurate and timely market data. This is where data feed providers for trading come in.

Data feed managers are software programs that provide real-time market data for trading. They collect data from various sources, such as stock exchanges, financial news sources, and other data providers, and deliver it to traders in a structured format. This data is critical for traders to make informed decisions about when to enter or exit trades, what assets to trade, and how much to invest.

So, what should you look for in a data feed provider?

Speed and Accuracy:

One of the primary benefits of using right data feed provider is the speed and accuracy of the data it provides. Market conditions can change rapidly, and traders need to have access to real-time data to stay ahead of the curve. Data feed managers deliver data to traders with minimal latency, ensuring that they can make informed decisions quickly.

Global Datafeeds is a leading data feed manager that provides traders with real-time market data for various asset classes, including equities, futures, options, currencies, and commodities. It offers data from most of the exchanges nationwide, ensuring that traders have access to a vast array of market data. Designed to deliver uninterrupted data feeds, it ensures that traders always have access to real-time market data which is critical for traders who rely on split-second updates to execute trades.

Data Integration:

Data integration with various charting and analysis tools is a must-have feature for data feed managers. It helps the trader to easily access and analyse large amounts of data in real time, without the need for manual data entry. Global Datafeeds facilitates the integration of data with MS Excel, Ami Broker, Ninja Trader, MetaStock and many other charting and analysis tools. Since the data is automatically updated and verified by the provider, Global Datafeeds users also benefit from accurate and consistent data for making real-time informed decisions.

API Integration:

A data feed manager must be reliable. It must have proven and sophisticated techniques to deliver direct exchange data feeds into multiple charting and technical analysis platforms, such as APIs. Global Datafeeds specializes in integrating the National Stock Exchange (NSE) API into its platform. By actively partnering with the NSE, it offers a seamless experience to traders, providing them with a direct link to the stock exchange’s vast database of information.

Affordability:

Data feed platforms must be able to deliver authentic and accurate live data of the Stock Market to their clients – at affordable prices. At Global Datafeeds, traders can choose from a variety of data plans, depending on their needs and budgets. They can also customize their data feeds by selecting specific asset classes, exchanges, and data types.

Compatibility:

Your data feed provider should be able to give you low latency, real-time data of various Stock Exchanges for desktop, server, mobile and web editions.

Global Datafeeds also provides innovative financial solutions that help traders stay ahead of the game. By leveraging the power of Global Datafeeds, users can gain access to reliable and flexible access to real-time market data, get deeper insights to make more informed decisions and improve overall productivity that can lead to significant profits.