Platforms and automation · Pro
Algorithmic trading
Also searched as: automated trading, algo trading
What does Algorithmic trading mean?
Algorithmic trading uses programmed rules to make or execute trading decisions. It can automate an entire strategy or only parts such as order placement and risk controls.
Example
A program enters after a specified signal and exits at a preset condition.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Technical permission, risk compliance and the ability to reproduce results in live conditions all matter.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.