Algorithmic Trading: Strategies, Benefits, and How It Works
Algorithmic trading, or algo trading, is the use of computer programmes to execute trades automatically based on a predefined set of rules. Those rules can be built around price movements, technical indicators, timing, or a combination of all three. The system removes emotion from trading, reacts faster than any human, and can run around the clock. Once reserved for institutional desks, it is now accessible to retail traders via platforms such as MetaTrader, TradingView, and the OANDA API.