Algo trading

Algo Trading is a method of trading in the stock market where computer programs automatically place buy and sell orders based on pre-defined rules. These rules are created using mathematical models, technical indicators, or market conditions.

How Does Algo Trading Work?

  1. Strategy Development:
    • Traders define a strategy (e.g., buy when the price hits ₹100, sell when it reaches ₹110).
  2. Coding the Strategy:
    • The strategy is converted into code using programming languages like Python, C++, or Java.
  3. Automation:
    • The algorithm automatically monitors the market and places trades when conditions are met.
  4. Execution:
    • The system executes trades at high speed, often faster than humans can.

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