Manual vs Automated Trading

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Algo Trading vs Manual Trading


What is Algo Trading🤖

Algo Trading (Algorithmic Trading) is a computer-based trading system that automatically executes trades based on predefined rules, mathematical models, and technical indicators.

What is Manual Trading🚀

  • Manual trading involves a trader analyzing the market, making decisions, and executing trades manually. It requires constant monitoring, decision-making based on experience, and is often influenced by human emotions like greed and fear.

Algo Trading vs Manual Trading⚡



Speed🎯

  •  Algo Trading:  Executes trades in milliseconds
  •  Manual Trading:  Slower execution as it depends on human action

 Emotion-Free Trading🔥

  • Algo Trading:  100% automated, no emotion
  • Manual Trading:  Affected by fear & greed, leading to impulsive decisions

Consistency📌

  •  Algo Trading:  High consistency as it follows predefined rules

  •  Manual Trading:   Inconsistent as it depends on trader’s emotions & mood

Monitoring Requirement🔹

  • Algo Trading:  No need for constant monitoring, runs automatically

  • Manual Trading:  Requires continuous screen time

Backtesting & Strategy Testing📊

  • Algo Trading:  Can be backtested using historical data
  • Manual Trading:  No proper way to test a strategy before applying it live

Market Coverage🚀

  • Algo Trading: Can track and trade multiple stocks simultaneously
  •  Manual Trading: Limited to a few stocks at a time due to manual effort

 Risk Management🤖

  • Algo Trading: Uses auto stop-loss, hedging, and risk controls to protect capital
  • Manual Trading: Risk management is manually controlled, increasing the chances of errors

CONCLUSION📌

  • Algo Trading is quickly becoming the preferred choice for professional traders. If you want faster execution, better risk management, and emotion-free trading one way select the algor trading.



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