What is algo trading

 and how does it work?


πŸ‘¨‍πŸ’» 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.


πŸ€– How it works:

πŸ”Ή A trader or developer designs a strategy

πŸ”Ή The rules are written into code (typically Python, C++, or MQL)

πŸ”Ή The strategy is tested on historical data

πŸ”Ή If it delivers consistent results, it can be deployed in live trading


πŸ’‘ Algo trading enables you to:

πŸ”Ή Eliminate emotion from trading decisions

πŸ”Ή Analyse hundreds of instruments simultaneously

πŸ”Ή Execute trades at high speed

πŸ”Ή Operate 24/7

A ds

❗ 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.

Comments

Popular posts from this blog

πŸ›°️ *Apple’s iOS 18 to Introduce Satellite Messaging*

πŸŽ™ Apple unveiled a brand-new state-of-the-art studio space in LA