Algo trading, short for algorithmic trading, is a technique that uses automated pre-programmed trading instructions that are executed based on several factors, including time, asset price, and trading volume. The method is also known as automated trading or black-box trading, as it depends on computer programs to execute a trade idea and generate profits from changes in market conditions.
Traders can use algorithmic trading software and customize various factors on when to execute a buy or sell trade on a specific asset they trade. The trader orders are automatically executed based on the instructions fed into the software, e.g., when the asset touches a specific price, after an exact time, or to a particular volume.
Several algorithmic trading bots on trading platforms offer automated trading services in crypto trading. These algorithms can be purchased or used to place automated trades in the crypto market and could be especially beneficial for high-volume trading.