Introduction to Algorithmic Trading: Algorithmic Trading 101 series
This is continuation of my blog series Algorithmic Trading 101: From Beginner to Pro
Algorithmic trading, also known as automated trading, is a process of using computer programs and algorithms to execute trades in financial markets. This approach to trading has gained popularity in recent years, as it offers many advantages over traditional manual trading. In this chapter, we’ll explore what algorithmic trading is and why it’s important. We’ll also discuss the advantages and disadvantages of using algorithms to make trading decisions.
What is Algorithmic Trading?
Algorithmic trading involves using computer programs and algorithms to make trading decisions, rather than relying on human intuition and decision-making. These algorithms are designed to execute trades automatically based on predetermined rules, market data, and other factors. Algorithmic trading can be used for a variety of purposes, such as executing large orders, taking advantage of market inefficiencies, and reducing trading costs.
Advantages of Algorithmic Trading
There are several advantages of algorithmic trading, including:
- Speed and Efficiency: Algorithms can execute trades much faster and more efficiently than humans, enabling…
