Definition #
AI systems executing trades based on technical indicators and news sentiment.
Key Characteristics #
- Latency optimization
- Blacklist compliance
- Slippage control
- Backtesting
Why It Matters #
Executes trades in 0.0001 seconds vs 0.3s manually (NYSE).
Common Use Cases #
- High-frequency trading
- Portfolio rebalancing
- Arbitrage
Examples #
- MetaTrader
- QuantConnect
- Alpaca
FAQs #
Q: Regulatory oversight?
A: FINRA Rule 5210 requires tagging all algo orders.
Q: Retail access?
A: Platforms like eToro allow $500+ accounts with prebuilt strategies.