Algorithmic trading, often referred to as algo trading, is a method of executing trades using automated software based on predetermined criteria. This approach has gained significant popularity in the forex market, where speed and precision are crucial for success. Another term for algo trading is Expert Advisors (EAs). 

The primary advantage of algo trading is its ability to execute trades at lightning speed, far surpassing human capabilities. Algorithms can analyze multiple market conditions simultaneously and make decisions based on data, eliminating emotional bias and human error. This allows traders to take advantage of short-term price fluctuations that may be missed in manual trading. 

Algo trading can incorporate various strategies, including arbitrage, trend following, and market making. For instance, a trader might design an algorithm that executes trades when certain technical indicators meet predefined conditions, such as moving average crossovers or specific candlestick patterns. Additionally, algos can adjust their strategies based on market volatility or news events, enhancing their adaptability. 

Moreover, algo trading allows for backtesting strategies using historical data to evaluate their effectiveness before deploying them in live markets. This feature is crucial for refining trading strategies and understanding potential risks.