A trading frequency is the number of times security is traded in a given time period. For example, if security is traded (bought and sold) 1,000 times in a day, the frequency would be 1,000. Also, when it comes to trading frequency, you will undoubtedly come across High-Frequency Trading (HFT). It is a form of algorithmic trading that relies on ultra-high-speed connections and computers to get in and out of trades at a rapid pace, so the security is likely held for only a fraction of a second. This makes it possible for such algorithms to execute millions of trades in seconds and reach a high trading frequency.
The same logic applies to cryptocurrencies: replace security with cryptocurrency.
AI Use in Trading
Artificial Intelligence has altered numerous sectors, and the world of trading is no exception. However, it is still more of a helper to traders.