What is Algorithmic Trading?
Algorithmic trading uses a computer program to place or manage orders based on predefined rules. The algorithm handles entries, exits, and sometimes sizing automatically once it is running. Algorithmic execution removes manual hesitation, but it only does what it is told, so a flawed or untested rule set still produces flawed trades.
Why Algorithmic Trading matters
Automation does not fix a weak idea, so knowing this keeps testing in front of execution.
Related terms
Lessons that use this term
Continue