What is algo trading?

Algorithmic trading, or algo trading, is a strategy where orders are executed automatically based on predefined rules programmed into a computer program. This method allows for swift order placement at a speed and frequency that surpasses human capability.

Even though users can create algorithms to generate buy or sell signals, it’s important to note that full automation is not allowed for retail traders. Manual intervention is necessary for placing orders in order to comply with regulations and ensure responsible trading practices.