From the course: Algorithmic Trading and Stocks Essential Training

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Algo trading services for individual investors

Algo trading services for individual investors

From the course: Algorithmic Trading and Stocks Essential Training

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Algo trading services for individual investors

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- [Instructor] There are a lot of different products that are out there for algo traders, both professional traders and individual traders. So let's take a look at some examples. But, first, I want to talk a little bit about some of the Key Performance Indicators, or KPIs, you should be using when it comes to algo trading. So this chart is a nice one that comes from Morgan Stanley, and I think it encapsulates a lot of the most important and crucial metrics to look at when you're going through and doing algorithmic trading. So Morgan Stanley is going to note, as an example, through their E*TRADE platform, what percentage of the trades are at or better than NBBO? That's National Best Bid and Offer. Where's the price improvement percentage? How fast is your execution? What's that price improvement amount? And then what is the effective or quoted spread? And these five metrics are key metrics that you want to be thinking about when you're choosing any platform, and you need to be thinking…

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