Algorithmic Trading Basics
Master automated trading strategies and build your first trading bot
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0 / 5 completedWhat is Algorithmic Trading?
Algorithmic trading uses computer programs to execute trades based on predefined rules and mathematical models. These automated systems can process vast amounts of data, identify patterns, and execute trades faster than any human trader.
Why Algo Trading?
⚡Speed & Precision - Execute thousands of trades per second with microsecond reaction times
🤖No Emotions - Remove fear, greed, and bias from trading decisions
📊24/7 Monitoring - Trade around the clock across multiple markets simultaneously
✓Advantages
- • Faster execution than manual trading
- • Consistent rule application
- • Backtesting on historical data
- • Multi-market monitoring
⚠️Challenges
- • Requires programming skills
- • Technical failures possible
- • Market conditions change
- • Over-optimization risk
📈 Market Share
Algorithmic trading accounts for 60-73% of all US equity trading volume and over 50% of crypto trading. Major institutions rely heavily on automated systems for execution, market making, and strategy implementation.