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What is algorithmic trading in forex?

Algorithmic trading uses computer programs or bots to execute trades automatically based on pre-defined rules. These systems can analyze large amounts of data, spot opportunities, and execute orders faster than humans. Common approaches include trend-following algorithms, arbitrage, and high-frequency trading. Algorithmic trading helps remove emotions and ensures discipline, but it also carries risks of technical errors, over-optimization, and reliance on market conditions. Many traders use platforms like MetaTrader with Expert Advisors (EAs) to automate strategies. While automation can improve efficiency, traders must still monitor performance and manage risk, since no algorithm guarantees profitability in all market environments.