Increased Speed:
Algorithms are written beforehand and executed automatically. They are able to measure
market conditions (multiple technical and fundamental indicators) in a fraction of the time
it would take to manually analyse all the information. Traders are able to take advantage of
sharp fluctuations in currency rates, following important news releases. They can identify
price movements easier and access more trading opportunities at better prices.
Increased
Accuracy: With manual trading, there are chances of incorrect entries, such as
wrong position size, currency pair or execution price. With algorithmic trading, traders can
avoid the pitfalls of human error.
No Emotional
Bias: Algorithms are a pre-defined set of criteria, and when trades are limited
to them, the aspect of human emotions is removed. Irrational decisions, made out of fear or
greed, can often lead to costly trading mistakes. Algo-trading provides a way to avoid that
with its role likened to that of a financial advisor.