• There are many structured courses available to learn Algorithmic trading.
• Algorithmic Trading is a high salaried job.
Algorithmic Trading is a method of buying and selling back securities on a predetermined collection of rules.
From where we can start learning
There are structured courses in algorithmic trading available on popular ed- tech platforms like CFA Institute, Coursera, QuantInsti and World Quant University, which can be extremely helpful. In addition, many universities like BSE Institute have recently started full fledged programs on Algo Trading.
One can start learning from their efforts through a structured learning program. The skills necessary are:
1. Understanding of financial markets, factors influencing financial markets, macroeconomics, financial instruments and financial data.
2. Understanding math and statistics is must. Programming is also a requirement, but one does not need advanced coding skills. However, knowledge of high level languages like python, R or even visual basic used in excel is an excellent place to start.
3. Understanding the regulations and the roles and responsibilities of various financial intermediaries is also extremely important.
Future of algorithmic trading
In Algorithmic trading the traders have an opportunities of making profits. The algorithm makes trading more systematic by ruling out the impact of human emotions and errors on trading activities. It also makes the market more efficient and liquid. India has 50-60% penetration of algo trading but the developed markets, have much higher penetration, more complex products and more accessible regulations. Indian market and algorithmic trading will continue to grow . New leaders would come into the market in the technology, data science, education, and content development.
Salaries in Algo Trading
Data Scientist: INR 1.5 million per annum
Algo Trader: INR 800,000 per annum + incentives,
HFT trader: up to INR 2 million per annum,
Quant Research Analyst: INR 2 million per annum,
Quantitative Research: AED 1,00,000 + up to 40 % incentives per annum,
Trader: SGD 120,000 + performance linked bonus per annum,
Trader Derivatives: HKD 384,000 per annum + performance linked bonus
It is a known fact that salaries & bonuses are lucrative in algorithmic trading firms.