> For the complete documentation index, see [llms.txt](https://docs.algo724.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.algo724.com/what-is-algorithmic-trading.md).

# What is Algorithmic Trading?

Don't let the complicated name scare you. At its core, algorithmic trading is simple:

> It's the practice of using a computer program to automatically buy and sell assets for you based on a pre-defined set of rules.

<figure><img src="https://1434214784-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7Ox7jAKdp8OVyieYercp%2Fuploads%2Fqv6jZHvzVkvETZJpHNVc%2Fimage.png?alt=media&amp;token=983f959a-1c81-4ea1-b63a-5f8d58feee63" alt=""><figcaption><p> <em>Let your automated trading bot follow your rules and seize market opportunities 24/7</em></p></figcaption></figure>

Think of a trading bot as your personal assistant who works 24/7. You give it a specific strategy (the "rules"), and it executes that strategy tirelessly, without emotion, day or night.

For example, a simple rule could be: "When the price of Bitcoin drops by 1%, buy $100 worth. When it rises by 1% from where you bought it, sell it."

The bot follows these instructions precisely, allowing you to take advantage of market opportunities even when you're asleep, at work, or on vacation.