$ETH Algorithmic Trading

Algorithmic trading, or algo trading, uses computer programs to execute trades automatically based on predefined criteria such as price, timing, and volume. These algorithms can process vast amounts of data faster than humans, allowing for high-frequency trading and minimal emotional interference. Common strategies include arbitrage, trend following, and mean reversion. Algo trading reduces transaction costs and improves order execution speed. However, it also requires strong programming skills, market knowledge, and backtesting to ensure reliability. While powerful, poorly designed algorithms can lead to significant losses. As markets evolve, algorithmic trading continues to grow, shaping the future of global financial markets.