Robo Trading
• Risk: Often riskier because it focuses on certain strategy breakouts, with limited adaptability.
• Users: Typically used by casual or average investors with lower capital.
• Operation: Runs on a personal computer or via third-party platforms with higher dependency on local internet or VPS servers. Inconsistent connectivity can lead to capital wipeout if stop-loss orders fail to execute.
• Technology: Commonly developed on older technologies (C, C#, C++), which may introduce latency and slippage. Some robo solutions can be built with minimal expertise.
• Brokerage: Often provided by brokers aiming to increase trading frequency, thereby raising brokerage fees.
Algo Trading
• Accuracy & Risk: Highly accurate, faster execution, and generally lower risk due to sophisticated, real-time strategies.
• Users: Favored by professional traders, investment banks, hedge funds, and institutional investors who require robust, high-speed solutions.
• Development: Built by experienced firms (like InvestEzzy) that leverage proven market knowledge and data science to deliver consistent performance rather than just generating brokerage revenue.
• Technology: Commonly developed in Python and hosted on secure, low-latency servers—enabling near-instant execution.
• Infrastructure: Cloud-based (e.g., AWS) to ensure stable connectivity and minimal downtime. Multiple strategies can be deployed simultaneously to adapt to various market conditions.