An algorithm is a set of instructions which a computer is programmed to follow in order to carry out a particular task. In the case of trading, these defined instructions pertain to placing trades with a speed and precision which a human trader would not be able to achieve. The instructions set the timing, quantity, price limits or any other relevant criteria that would ensure the most profitable trade.
It is important to keep in mind that algotrading is a market strategy and not meant for long-term investors.
It is important to keep in mind that algotrading is a market strategy and not meant for long-term investors.