Algorithmic trading booms in Asia, but not in Vietnam
VietNamNet Bridge - Vietnamese investors say they do not like algo trading because they believe robots cannot help them make money.



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Algorithmic trading, algo trading, automated trading, robo trading, and blackbox trading is popular in Asia, and was introduced in Vietnam several years ago. 

Many training courses were organised on algo trading which attracted many investors. They were shown how the robots informed investors about stocks and when to buy or sell them.

As robot trading has exploded in Asia and more and more professional companies have been established, robots which can make recommendations on how to trade stocks has once again appeared.

Algo trading is a process of using computers programmed to follow a defined set of instructions for placing a trade in order to generate profits.

In Asia, more and more speculation funds make investments based on algorithms. According to Eurekahedge, since 2006, the number of quantitative investment funds has increased by twofold.

In Asia, more and more speculation funds make investments based on algorithms. According to Eurekahedge, since 2006, the number of quantitative investment funds has increased by twofold.

Experts explain that algorithms, which have vast memories, can find good opportunities to make money and preserve capital. Eurekahedge reported that quantitative investment funds in Asia have had profitability higher than the average rate in the last four years.

However, Vietnamese investors still do not want to use robots in making investments. 

Some companies provided robots in the past, namely iTrade, Phu Toan and BeRich, but they are no longer heard about in the market.

At present, there are only a few names existing, including Bloomberg Viet Nam (finvn), StockTraders and algorithms invented by institutions and individuals. 

As for Vietnamese investors, they use software AmiBroker and MetaStock.

Nguyen Ngoc Chuc, president and Chief Executive Officer of StockTraders, said that to be able to apply algo trading in the Vietnamese stock market in an effective way, the most important thing is writing algorithms which robots can understand and make a decision.


The biggest problem of algo trading systems is that not all software pieces can predict trends in the future. They only can recognize new trends and follow trends. In other words, they can only give ‘late alarms’.

In order to adapt to the changes in the market and compete with other robots, algorithms have to improve regularly.


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Mai Thanh

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