Algorithm trading is a system of trading that facilitates transaction decision making in the financial markets using advanced mathematical tools.
This method uses computer codes and charts analysis to enter and exit trades according to set parameters such as price movements or volatility levels.
Once the current market conditions match any predetermined criteria, trading algorithms can execute a buy or sell order on your behalf.
This can save you time scanning the markets, and it means that your trades are executed almost instantly.
Using these two simple instructions, a computer program will automatically monitor the stock price and place to buy and sell orders when the defined conditions are met.
The trader no longer needs to monitor live prices and graphs or put in the orders manually.