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Yeah, my impression is that professionals distinguish algorithmic trading (minimising price impact of a given order) and automated trading (rule based trading t
by FabHK 8y ago
Yeah, my impression is that professionals distinguish algorithmic trading (minimising price impact of a given order) and automated trading (rule based trading to generate profit), while amateurs (including Investopedia) tend to use the term "algorithmic trading" either for both, or for the latter while being completely unfamiliar with the former.
- webmascon 8y agoCorrect. And it is not just Investopedia who is misleading. Type Algorithmic trading in amazon search and you will see tens of books on this topic that have nothing to do with algorithmic trading. No wonder some people are claiming they are doing algorithmictrading and even high frequency trading using their laptops from their bedrooms.