#AIImpactOnForex Algorithmic trading leverages computer programs to execute trades based on predefined instructions, automating the process of buying and selling financial instruments. These algorithms analyze market data, identify trading opportunities based on specific rules and conditions, and then automatically place orders without human intervention. The core principle is to remove emotional biases and execute trades with speed and precision that human traders often cannot achieve. This approach requires a well-defined trading strategy, translated into code, that dictates when to enter and exit positions, the size of the trades, and risk management parameters. Algorithmic trading systems can handle vast amounts of data and execute numerous trades simultaneously, making them particularly useful in fast-paced markets and for implementing complex strategies. The benefits include increased efficiency, reduced transaction costs, and the ability to backtest and optimize strategies before deployment in live markets.