Risk Disclaimer: Trading can contain substantial risk and is not suited for every investor. An investor could potentially lose all or more than their initial investment. “Risk capital” - is money that can be lost without jeopardizing one’s financial security or lifestyle.  Only “risk capital” should be used for trading and only those with sufficient risk capital should consider trading. iMarketsLive is not a licensed financial advisor nor does it give out financial advice. The user of IML products and/or services assumes full risk and responsibility for their trading activity. Past performance is not indicative of future results. Individual results will vary due to a variety of market and timing conditions.

• What is an Algorithm

• How to identify Algorithms in Cryptocurrency

• How to use the Algorithm Order Flow to help confirm your table bias

*Algorithms

What is an Algorithm?

Automated Trading uses computers that are programmed to follow instructions for placing trades and interpreting data much faster than human traders. The traders who make use of algorithms also receive more systematic trades because human emotions aren’t involved.

There are simple algorithms that will buy or sell then technical indicators give confirmations, algorithms that trade simultaneously with you, and automated systems that are self-learning!

Common algorithmic trading strategies include trend following, arbitrage, and range breakouts, amongst many others and there are even some designed to identify and ‘trick’ other algorithms!

Quality algorithms are thoroughly back-tested before real-time use in the markets.

In summary: Algorithms are present in any financial market. There are pros and cons to using an algorithm as part of your trading strategy because while they are able to perform certain actions more efficiently than humans, they are still robots.