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General TradingA
Algorithmic Trading
The use of computer programs and algorithms to execute trading orders at high speed based on predefined criteria like price, timing, and volume. Algorithmic trading now accounts for a significant portion of daily volume in equity and forex markets. It offers advantages including faster execution, reduced emotional bias, and the ability to backtest strategies against historical data.
Example
“Our algorithmic trading system automatically entered a long position when the 50-day moving average crossed above the 200-day.”