# Algorithmic Trading

Algorithmic trading is a semi-DeFi product on the Waves blockchain that is driven by the automated market order execution system based on pre-programmed trading commands or specifications. The system is able to make thousands of trades per second without human control.

You can invest in algorithmic trading. The invested funds are accumulated on the Waves blockchain and used as collateral on the smart contracts, which are then proxied into algorithmic trading strategies among few centralized exchanges, like Bitmex, Binance, Okex, etc., part of the invested funds are also used on Waves.Exchange.

Investing in algorithmic trading is associated with high profit and risk (opens new window).

When you invest in algorithmic trading, you can select the risk level of your investment (Conservative, Moderate or Aggressive). Based on this selection, you receive certain type of ALP (opens new window) assets in return. ALP is the assurance asset that proves that your assets are invested in the smart contract (opens new window). For example, if you invest in USDT algorithmic trading with Moderate risk, the ALP asset that you receive in return is AUSDTLPM. For Conservative risk investment, the ALP asset is AUSDTLPC. For Aggressive risk investment, the ALP asset is AUSDTLPA. The price of ALP assets is calculated by the formula (opens new window).

You can withdraw your assets at any time, i.e. exchange your ALP assets to the assets that you originally invested at a new price. The difference between ALP price when you invest and the changed price when you exit is your income.

Currently Waves.Exchange supports investing in USDT, BTC and ETH algorithmic trading. Other assets will be supported in the future releases.

# How to Invest Assets in Algorithmic Trading

Open Waves.Exchange (opens new window) app, login to your account and navigate to the Algorithmic Trading page of the asset that you want to invest, for example Investments > USDT Algorithmic Trading (opens new window).

Make sure that you have enough assets to invest on your balance. How to get assets to your balance.

On the algorithmic trading page select Conservative, Moderate or Aggressive Risk Investment and click Invest.

In the I send field specify the amount that you want to invest. The I receive field displays the approximate amount and type of ALP that you will receive.

The amount displayed in the I receive field is calculated based on the latest price of the ALP asset, so the actual amount of the received ALP may differ from the displayed amount.

Review the conditions, select I agree with rules checkbox and click Invest USDT. In the next popup carefully read the message and click I agree to confirm your investment.

When you click Invest USDT you create a request to exchange the invested assets for ALP assets. Your ALP assets will be locked on the contract until the end of the settlement period (opens new window). The exchange itself takes place immediately after the settlement period, at the new price of the ALP asset. After that you can get your ALP assets on the algorithmic trading page by clicking Get in the block with the transactions.

# How to Withdraw Assets from Algorithmic Trading

Click Withdraw.

In the I send field specify the amount of ALP that you want to exchange to USDT. The I receive field displays the approximate amount of USDT that you will receive.

The amount displayed in the I receive field is calculated based on the latest price of the ALP asset, so the actual amount of the received USDT may differ from the displayed amount.

Review the conditions, select I agree with rules checkbox and click Withdraw USDT.

When you click Withdraw USDT you create a request to exchange ALP for USDT. Your USDT will be locked on the contract until the end of the settlement period (opens new window). The exchange itself takes place immediately after the settlement period, at the new price of the ALP asset. After that you can get your USDT on the algorithmic trading page by clicking Get USDT in the block with the transactions.

See more articles in the Asset Management chapter.

If you have difficulties with Waves.Exchange, please create a support (opens new window) ticket or write a question on our forum (opens new window).