Algorithmic Trading

Algorithmic Trading — Trading executed by computer programs based on predefined rules, without human intervention per trade.

Quick definition: Trading executed by computer programs based on predefined rules, without human intervention per trade.
Category: Concepts

Full Definition

Algorithmic trading (also: algo trading, automated trading, system trading) means a computer makes the trading decisions. Most prop firms allow it provided the algorithm respects their rules (no copying, no arbitrage exploits, no high-frequency strategies under 10 seconds). EAs on MT4/MT5 are the most common form for retail.

Related Terms

EA (Expert Advisor) · Backtesting

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