Algorithmic trading

Algorithmic trading means handing off the execution of a strategy to a program: you define the rules — entry conditions, exit conditions, position size — and the machine applies them. Don’t confuse it with AI: a classic algorithm learns nothing; it obeys. Yet it makes up most of what’s sold today under the label “AI trading”. Its real strength is discipline and speed; its limit is that a rule set written for one market stops working once that market changes. A flattering backtest, then, guarantees nothing — it’s a test run on the past. Where it fits among the other families of tools: AI trading: the complete guide.