Algorithmic trading

Algorithmic trading uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader. The branches of this mind map further extend into additional level, including trading platform, strategies, asset class, back testing and live execution. Algorithmic trading provides a more systematic approach to active trading than methods based on trader intuition or instinct.

Edited at 2021-03-29 01:51:27