What is algo trading

 and how does it work?


๐Ÿ‘จ‍๐Ÿ’ป Algorithmic trading (or algo trading) is a way of trading on financial markets using automated programs (or bots) that place trades based on predefined rules. These rules may involve technical indicators, price levels, volume, volatility, or even news events.


๐Ÿค– How it works:

๐Ÿ”น A trader or developer designs a strategy

๐Ÿ”น The rules are written into code (typically Python, C++, or MQL)

๐Ÿ”น The strategy is tested on historical data

๐Ÿ”น If it delivers consistent results, it can be deployed in live trading


๐Ÿ’ก Algo trading enables you to:

๐Ÿ”น Eliminate emotion from trading decisions

๐Ÿ”น Analyse hundreds of instruments simultaneously

๐Ÿ”น Execute trades at high speed

๐Ÿ”น Operate 24/7

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❗ This approach is used by both individual traders and large hedge funds. However, it is important to remember the risks: even automated strategies require monitoring, regular analysis, and effective risk management.


Trading involves high risks and you can lose your entire deposit.

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