What is algo trading
and how does it work?
π¨π» 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.
π€ How it works:
πΉ A trader or developer designs a strategy
πΉ The rules are written into code (typically Python, C++, or MQL)
πΉ The strategy is tested on historical data
πΉ If it delivers consistent results, it can be deployed in live trading
π‘ Algo trading enables you to:
πΉ Eliminate emotion from trading decisions
πΉ Analyse hundreds of instruments simultaneously
πΉ Execute trades at high speed
πΉ 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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