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Arihant Capital chief strategy officer explains how algo trading differs
In the interview, Shruti Jain said new traders can start with ready made strategies on regulated platforms, but automation still cannot be accountable.
In an interview with LiveMint Markets, Shruti Jain, chief strategy officer at Arihant Capital Markets, described how algorithmic trading differs from traditional trading.
Jain said traditional trading is fully human driven and requires traders to monitor markets during the trading session, analyze trends, and place trades manually, with delays and emotion potentially affecting outcomes.
She said algo trading uses automated code based on predefined rules, allowing a computer program to watch the market and execute trades in milliseconds when conditions are met, while removing emotions from the process.
Jain also stressed that although algorithms can be faster and unbiased, traders remain responsible, since machines cannot be accountable.