The following article is an op-ed by Laurent Benayoun, CEO of Acheron Trading.Algorithmic trading, or “algo trading”, has swiftly established itself within the financial landscape, particularly within the volatile, high-paced crypto market. While often perceived as a domain for high-frequency traders with deep pockets, algo trading is, at its core, about automating trading strategies to create a more systematic, unbiased approach. The crypto market has proven to be an ideal playground for these strategies, given its 24/7 operation, high volatility, and rapid evolution, but misconceptions persist.While many assume algo trading is synonymous with high-frequency trading (HFT), it’s actually a broader category. In fact, algorithmic trading is responsible for approximately 60-70% of overall trading volume in developed markets, with a significant portion of trades automated to replace human inconsistencies with disciplined, data-backed decisions. An algorithm might follow simple rules, such as moving average crossovers or more advanced predictive models, strategies that bring precision and structure to trading decisions in a market that never stops.Despite its strengths, algorithmic trading faces challenges: the biggest being the need to adapt to unpredictable market shifts and rapidly changing technologies. However, its potential is enormous: the global algorithmic trading market size was valued at around $17 billion in 2023 and is expected to reach $65.2 billion by 2032, growing steadily as both retail and institutional players adopt these technologies. This growth demonstrates the potential of algo trading to facilitate faster, more data-informed trades, while democratizing access to trading strategies previously reserved for institutional players. By addressing these challenges and dispelling myths, we see how algo trading is transforming crypto into a more accessible and resilient landscape for all types of traders.Algo Trading Isn’t Just for Big PlayersOne common misconception is that algo trading requires substantial infrastructure and data resources, making it exclusive to those with deep pockets. While high-frequency trading can indeed benefit from cutting-edge technology, most algo strategies can be implemented with basic tools. Many algorithms today focus not on speed but on simple functions such as a dollar cost average strategy rather than to gain a split-second advantage.Dispelling the myth that algo trading is limited to the ultra-elite is crucial in widening access to these strategies for all traders. This is especially true in crypto, where algorithmic trading accounts for up to 80% of daily trading volume on some major exchanges, making it an effective tool for interpreting and responding to the real-time shifts unique to this market.In crypto, for instance, we see pronounced effects from influential voices, whether it’s an Elon Musk tweet about Dogecoin or regulatory announcements that send shockwaves across the market. Som
Sab. Gen 4th, 2025
