What Is Algorithmic Trading

What Is algo trading software ? In essence, algorithmic trading refers to an automated trading system created by traders which scans the market in search of optimal trading opportunities. This involves creating instructions for a computer program which will execute buy or sell orders when certain conditions are met - making this an excellent method for traders looking for less emotional decisions and instead acting consistently and rationally.





To develop an algorithm, traders first must educate themselves about their desired trading strategies - this may involve taking online courses, reading trading books or learning from experienced traders. Once educated on various trading strategies they're interested in, traders must select a platform which supports algorithmic trading before selecting software to backtest and forward test their algorithm on historical data and actual live trades respectively - compare results of both and determine whether results fall within expected range before launching it for real money trading.

When selecting a trading app for algorithms, it is crucial that the program can access real-time pricing and corporate information, as well as detect price differentials between markets - for instance buying dual listed stocks at lower prices can offer risk free profit opportunities.