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This Modern world is a gift from technology. With the help of the technologies now people are doing the IMPOSSIBLES. Technology has changed our way of life. At present, there are many different strategies for managing the investment portfolio. But did you know you can automate trading in order to become more profitable than ever? Algorithmic trading stocks automatically place orders based on the price and other conditions. You also may know it by automated trading or robot trading. Automated trading or robot trading is the future of the online trading industry. Before You use ROBOT TRADING, Keep This In mind that you have to research a lot about this platform because it's just a technology. As a result, it can cause mechanical errors. So, you have to choose the best auto trading platform. And also you will have to gain a vast amount of knowledge regarding it. Specifically you've to know -- - The Basics - History of Algorithmic Trading - How It Works - Pros and Cons Therefore, without any further discussion, let's dive right in. Algorithmic Trading: The Basics An algorithm is a procedure where one solves the problem, usually math. Usually, they require the following steps for solving said problem. Also, usually involving repetition. Similarly, algorithmic trading, also called algo-trading, is a computer program trading by following certain steps in a particular order. In short, stock trading through computer automation. Above all, seeks the highest possible returns on trade in the most efficient manner. Also referred to as automated trading or black-box trading, algorithmic trading market using several variables in the algorithm. These variables include price, time, and volume. Algorithmic Trading History The algorithm trading entered the world U.S.financial with a computerized trading system in the 1970s. The New York Stock Exchange took the biggest step in 1976 when it introduced the Order Turnaround (DOT) designated system that send orders to the right of traders to specialist data on the trading floor. In the last decade, automated trading accounts for over 60% of all trades. In 2014, author Michael Lewis describes algorithmic and high-frequency trading with his flash Boys. He explains rear electronic trading infrastructure and talking to traders and business owners who use them. While he noted that the computerized technology can trade even faster than any human. How it works In algorithmic trading, traders take advantage of the computer program to the requirements set to trade. For example, to buy 100 shares when the specified number of shares moved below a predetermined price. Similarly, it could sell 100 shares when it moves above a certain price threshold. The program then monitors the stock price. After fulfilling these criteria, the computer automatically acts in accordance with pre-programmed to buy or sell orders. With algorithmic trading, the trader does not need to manually make a trade. Pros and Cons Algorithmic trading can be a powerful trading tool. As a result, the modern financial world to use it for several reasons. First, it allows to impose trade on the speed and accuracy is much higher than trading manually created. Trades happen almost instantaneously, lower price fluctuation changes between the trader decisions and actual trades. There is also a lower chance of human error rather than as a human trader makes a trade. Meanwhile, automated trading often has lower costs with no human traders involved. But this method is not without its downfalls trading. For one, while the automated algorithmic trading systems can streamline trade, making them more accurate and efficient, there is also the possibility that the system could fail. This can cause investors to lose potential investment opportunities. Having a trading human monitors often wise counsel. It can ensure the trade occurs as specified. The trading method does not account for the emotional aspect of trading. While this may initially seem like a good thing. After all, who does not make a trade only on the basis of emotional experience or anecdote only to have the tank? But algorithms can only take you so far, and in some cases, what works, in theory, may not translate well to the market for various reasons. Think of market volatility, inherent risks, and the like. Using Algorithmic Trading The current financial market using algorithmic trading applications. It is often paired with high-frequency trading, which makes a large number of trades at high speeds in a variety of market sectors. Artificial intelligence has created a deep learning algorithms that look for more profitable trading. As a result of traders and programmers who work on the algorithm become more profitable on their own. institutional investors and brokers greater use Algo trading, but so mutual funds, pensions, and another large-scale investment vehicle. However, hedge funds asking for amateur programmers to write algorithms, pay them a commission for code that is very profitable. High-speed internet and fast, inexpensive computers have made trading algo a favorite among day traders. The Bottom line Ideally, algorithmic trading can achieve both results and the speed of trade traffickers can not. For that reason, it is a cornerstone of the modern financial world. However, this method is not without its downsides, of over-automation for the failure to take into account the real market conditions. In the end, if you want to use an automated trading platforms then you'll also have to make up your mind about losing all your capital. But if you use the rules and regulations and choose the best and trusted automated trading platform then you'll get the results.