For the beginner investor, understanding the underlying concepts behind algorithmic trading may seem ambitious. However, with some basic knowledge, and some practice, understanding the use of algo traders can be incredibly helpful in improving overall strategy and performance. Algo traders come equipped with two primary components: strategy and tactics.At the most basic level, strategies are the large-scale investing decisions made by the algo trader. Tactics refer to the algorithmic instructions that are used to filter and act upon the inputs of the trader. Strategies should be decided through a combination of insights, research, and analysis. Over time, strategies should change in response to the changing markets and trends. Tactics are the rules that dictate how the strategies will be performed. Tactics involve the logic which dictates when and how to buy, sell, and/or hold a form of investment.Comparing different algorithmic trading strategies is the key to success in algo trading. Two of the most commonly used strategies are Trend Following and Mean Reversion. Trend Following takes advantage of market trends, and will usually trade with lower risk thresholds. Mean Reversion is considered a more conservative strategy, as it will trade against the market trend, and take on slightly higher risks.Additionally, algo trading allows investors to set limits and criteria, which automate the decision-making process. This eliminates the need to manually enter orders during market surges, allowing investors to save time and reduce any investor fatigue. Algo trading also allows the investor to take advantage of the latest news and pricing information that is available each second. This can lead to better performance and greater profits.In summary, algo traders are a great tool for novice investors, as they provide the opportunity to reduce risks and maximize returns. By understanding the basics of algo trading, including strategies and tactics, novice traders can profit from the fast-paced markets with greater ease and control. By comparing popular algorithmic trading strategies, such as Trend Following and Mean Reversion, investors can find the ideal system for their own investment style and preferences. As the regulatory industry matures, algorithmic trading is sure to keep growing and become essential for those looking to make the most of their investment returns.