AlgoTrading

Algo trading involves the use of computer algorithms to execute trades on behalf of investors automatically.

The algorithms process real-time market data, identify patterns, and make split-second decisions to buy or sell financial instruments.

Algorithmic trading has several benefits, including speed and effectiveness. Human traders are unable to execute trades at the speed of microseconds that computers can.

Human emotions can often cloud judgment and lead to poor trading decisions. Algorithmic trading removes emotional bias from the equation, ensuring that trades are executed based on predefined criteria

Traders can backtest their algorithms using past data to assess performance prior to adopting an Algorithmic trading strategy.

Algorithmic trading techniques can be made better with the use of artificial intelligence and machine learning

Algorithmic trading will become more and more important as technology develops in the future, influencing how financial markets will function.