What is Algorithmic Trading?
Updated October 17, 2026
Algorithmic trading is using computer programs that follow set rules to place trades automatically.
Algo trading is the bigger umbrella over bots and EAs. A set of rules gets turned into code.
Big banks and funds do it at huge speed. Regular people can use simpler versions on MetaTrader or through platforms.
An algorithm is only as good as its rules. Markets change, so even a strong algo can hit rough patches.
Example
A rule says buy when the 20 moving average crosses above the 50, and the program does it every time.
Questions people ask
Do I need to code?
Not anymore. Many tools let you build or rent strategies without coding.
Is algo trading risky?
Yes. It removes emotion, not risk.
Related
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