Speed, accuracy, and efficiency are the major advantages of Algo trading. But a trader should be aware of the disadvantages too.
Technical glitches are the major disadvantage of System trading. It may lead to financial losses. Another is the lack of human oversight, which can lead to the implementation of flawed or irrational trading strategies. Additionally, algo trading can contribute to market volatility and exacerbate market crashes if algorithms all react in similar ways to sudden market changes.
Individual Traders have difficulty arranging high-end software and tools. But Institutional trade has the latest technologies and strategies to crack the market.
Finally, some critics argue that algo trading contributes to a lack of transparency in the financial markets and may pose ethical concerns.