Algorithmic Trading Explained with Live Account Data
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Updated 3 November 2026
Algorithmic trading means that written rules decide when to buy, sell and exit, and software sends the orders to the market without a person pressing the button. The rules can be simple or complex, but they are fixed in advance. It does not remove market risk. You can still lose money, as our own live account shows.
Key facts
- Our live account went from 35,000 kr to 218,747 kr after fees from December 2023 to September 2026, +525 % (live results page, 1 October 2026).
- 20 of 34 months were positive and 14 negative in the same account (live results page, 1 October 2026).
- The largest decline from a peak was −23.5 %, from February to April 2024 (live results page, 1 October 2026).
- 74 to 89 % of retail CFD accounts typically lose money, according to the EU regulator ESMA (press release, 27 March 2018).
What is algorithmic trading?
Algorithmic trading is trading where a computer program decides the details of an order, such as when to send it, at what size and when to close it, with little or no human involvement. That is close to how the EU describes it in the MiFID II directive (2014/65/EU), which regulates investment firms and trading venues in the EU.
For a private trader, algorithmic trading usually means a trading algorithm, a small program with fixed rules that runs on a trading platform. Other common names are algo trading, trading bot, expert advisor in MetaTrader 5, or in Swedish börsrobot. The names differ, the idea is the same.
The rules are what make it algorithmic. A person can still choose the algo, the market and the risk level. But once it runs, every entry and exit follows the code, not a decision in the moment. Our article on day trading vs algo trading compares the two ways of working side by side.
How does algorithmic trading work, step by step?
It works as a loop of rules, data, orders and checks that repeats every time a new price bar closes. The table shows the steps for a retail algo on a platform such as ProRealTime or MetaTrader 5.
| Step | What happens | Who does it |
|---|---|---|
| 1. Rules | Conditions for entry, exit, stop loss and position size are written as code | The developer |
| 2. Backtest | The rules are run on historical prices. The result is simulated, not real trading | The developer |
| 3. Installation | The algo is added to the platform and connected to a broker account | The trader |
| 4. Signal | When a bar closes, the code checks the conditions against the new prices | The software |
| 5. Order | If the conditions are met, an order is sent with a stop loss set by the code | The software |
| 6. Follow-up | Positions, results and that the system is running are checked | The trader |
In ProRealTime the live part runs in ProOrder. According to ProRealTime's page on automatic trading, a ProOrder system keeps running on their servers after you close the platform. In MetaTrader 5 an expert advisor runs in the terminal, so the computer or a server has to be on. Our guide on how a trading bot works follows one trade from code to executed order.
What does a live account show about algorithmic trading?
It shows that rules give consistency, not a smooth result. These figures come from the algos we ran in our own ProRealTime account at IG from December 2023 to September 2026, after fees, as published every month on our live results page.
| Measure | Our live account | Period |
|---|---|---|
| Start and latest value | 35,000 kr to 218,747 kr | Dec 2023 to Sep 2026 |
| Result after fees | +525 % | Dec 2023 to Sep 2026 |
| Positive months | 20 of 34 | Dec 2023 to Sep 2026 |
| Average orders per day | 7.7 | Dec 2023 to Sep 2026 |
| Winning trades | 69 % | Dec 2023 to Sep 2026 |
| Largest decline from peak | −23.5 % | Feb to Apr 2024 |
| Change from the May 2025 peak | 271,930 kr to 218,747 kr, −19.6 % | May 2025 to Sep 2026 |
| Algos positive since start | 7 of 12 | Dec 2023 to Sep 2026 |
Two things stand out. Most of the gain came in the first 18 months, and since the peak in May 2025 the account has been lower, with 6 of 16 months positive. Also, 5 of the 12 algos we ran were negative since start, so the result came from a few of them.
That is normal for algorithmic trading. A set of rules can work well in one market phase and poorly in the next, and you cannot tell in advance which phase is coming. Past results, live or backtested, do not predict future returns.
Since October 2026 our main product is A+ Algo Portfolio V2.0, which does not have a live record of its own yet. Every algo and year from the live account is listed on A+ Algos in numbers.
What are the risks of algorithmic trading?
The risks are the same market and leverage risks as in manual trading, plus the risk that the rules or the technology fail. Most retail algos trade CFDs, and ESMA found that 74 to 89 % of retail CFD accounts typically lose money, which is one reason it limited leverage for retail clients in its measures on CFDs from 2018.
- Rule risk. The rules can stop working when the market changes, and an algo then loses money with perfect discipline.
- Overfitting. Rules tuned too closely to old prices look good in a backtest and worse live.
- Technical risk. In September 2025 IG had IT problems and our algos largely stopped trading after 10 September, which is noted on our live results page.
- Size risk. Too large a position turns a normal losing streak into a large loss. Our algos risk under 2 % of the account per trade, according to the live results page.
Trading CFDs involves high risk and you can lose money, with an algo as with your own hands.
Can you use algorithmic trading in Sweden?
Yes, private traders in Sweden can run algorithms through a broker that supports an automated platform. Our algos run in ProRealTime with IG, or in MetaTrader 5 with a broker that offers it. They trade CFDs on indices, gold and EUR/USD.
That matters for how the account works. CFDs are traded with leverage on a trading account, not as shares in an ISK. The tax and the risk are different from a normal share account, so read your broker's terms and the regulator's information before you start.
How do you get started with algorithmic trading?
You start by choosing a platform, an algo and a risk level you can afford to lose, and by testing before you trade larger. This is how we think about it, not advice on what you should do.
- Open an account with a broker that supports ProRealTime or MetaTrader 5.
- Choose an algo and read both its backtest, which is simulated, and any live record with dates.
- Install it and start with the smallest size. Our step by step guide shows how to install a ProRealTime algo.
- Check positions and results every day for the first weeks.
Our current portfolio for IG is A+ Algo Portfolio V2.0 for ProRealTime.
FAQ
Is algorithmic trading legal for private traders?
Yes. In the EU, private traders can run trading algorithms on their own accounts through brokers that support it, such as IG with ProRealTime. The detailed rules for algorithmic trading in MiFID II mainly apply to investment firms and trading venues. Your broker's terms still apply, and trading CFDs involves high risk.
Is a trading robot the same as algorithmic trading?
Yes, in everyday language. Trading robot, trading bot, börsrobot, expert advisor and algo all describe a program that trades by fixed rules. The term algorithmic trading is wider and also covers large institutions. For a private trader the practical meaning is the same, rules decide and software sends the orders.
Does algorithmic trading make money?
Some algorithms do in some periods, many do not. Our own live account rose 525 % after fees from December 2023 to September 2026, but 14 of 34 months were negative and it has been below its May 2025 peak since. Past results, live or backtested, do not predict future returns, and you can lose money.
Can I test algorithmic trading before I buy?
Yes. You can test one of our algos free for 14 days in your own ProRealTime or MetaTrader 5 account and see how the rules trade. If you run the test on a live account, the trades and any losses are real.
Summary
Algorithmic trading lets fixed rules make every trading decision and software send the orders. It gives consistency and saves screen time, but it does not remove market risk, and a live account will have losing months and long declines.
If you want to see how it works in your own account, you can test one of our algos free for 14 days.
See the results live. Every month since December 2023 we publish the result of our own algos after fees on the live results page. Our portfolio for IG is A+ Algo Portfolio V2.0 for ProRealTime.
Trading CFDs involves high risk and you can lose money. Past results, live or backtested, do not predict future returns.