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 institu

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Author: Laurent Benayoun