A beginners guide to algorithmic trading options in Malaysia

Algorithmic trading is quickly becoming the trader’s choice when buying and selling assets in Malaysia with algorithmic options trading. This form of advanced computer-driven financial trading has become so popular because it provides two significant advantages to traders: speed and accuracy.

Algorithmic trading Malaysia style

The most common type of algorithmic trading in Malaysia is where computers are programmed with sophisticated algorithms to act on specific market triggers within certain parameters. For example, you might instruct your computer to buy one share at 30 sen but only if the overall trend in the market is bullish (which means that it’s likely to go up). These automated rules save money by reducing transaction costs while simultaneously profits thanks to increased trade frequency, data analysis, and faster turnover.

Malaysia’s trading software is getting better every day due to the ever-growing demand for algorithmic trading options. Many companies focus on developing trading software; however, the famous ones are Ninja Trader, Metastock, Tradestation, to name a few. These days, you can even access the algorithmic trading platform to fit your needs with just a click of the mouse at CloudQuantum, which offers you access to various automated trading software according to your need.

Algorithmic trading system

An algorithm is a sequence of buying/selling something based on various market rules and signals. In non-specialists’ terms, it would be like setting up a recipe to add certain things, and specific results will happen.

Algorithmic trading systems in Malaysia are all very different, and each has its specific advantages and disadvantages.

Things to take into consideration would be:

  • The type of assets to be traded (stocks, commodities, bonds etc.)
  • Trade frequency (how often you’d like trades to be made)
  • Money management rules (stop losses, take profit limits etc.)
  • Trading signals provided by the software or research available on the market for you to read yourself.

As far as the first three factors go, this is entirely up to you as it’s your hard-earned money you’re trading with – not somebody else’s – so it’s always best to be as well prepared as possible before you start trading with it.

Providers and benefits

Once these factors have been determined, you’ll need to choose a provider for your algorithmic trading system software. Some companies, such as Ninja Trader Malaysia, offer users the opportunity to design their algorithmic trading systems. In contrast, others provide users with existing systems that they can install and use immediately.

The benefits of algorithmic trading in Malaysia include:

No emotions

When using an algorithmic trading system, you’re not relying on your gut instinct and intuition because these are often wrong, especially during times of panic-selling or market crashes. Your actions are entirely based on your pre-programmed rules, and there is no room for error.

You’re more likely to make money

When trading with automated software, you’re far less likely to make mistakes that could cost you dearly. It also depends on the software quality you’ve chosen, as not all trading algorithms are created equal – some may yield higher profits while others lower losses.


An algorithm doesn’t need breaks or lunch hours; it can trade round-the-clock five days a week unless your system requires downtime (which might be the case if it’s, e.g. something like an end-of-day system). Your trades will always happen at lightning speed regardless of market conditions, giving you an advantage over other traders who trade manually.

There are many algorithmic trading systems available, but one must never forget that not all trading algorithms are created equal; some may generate higher profit while others lower losses. What matters most is what suits you best, as everyone’s circumstances and investment goals are different.

To conclude

Remember that algorithmic trading systems in Malaysia are not always available for everyone; it all depends on the quality of the system you choose to use and your level of financial commitment toward this idea. Check with your broker about possible fees they might charge you for using automated software, as well as whether or not there is a minimum capital requirement to start investing via an algorithmic trading platform.

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