Manual vs Algo Trading : Which One Wins in 2025?

• Written by: spc_code
• June 11, 2025

Manual vs Algo Trading : Which One Wins in 2025?

 

Introduction

The world of trading is changing faster than ever before. With new technology, AI integration, and high-speed internet, everything about trading has changed dramatically. One of the most debated topics by traders today is: Manual vs Algo Trading – which is better in 2025?

If you are a beginner or even an experienced trader asking yourself whether you should stick to the manual way or move towards automation, this blog is your ultimate guide.

We will compare both types of trading head-to-head in great detail—features, advantages, limitations—and make your decision to see what best suits your trading style.

 

What is Manual Trading?

Manual Trading is buying and selling stocks, futures, or any other financial instruments through human decision-making. The trader does the technical analysis, monitors market news, reads charts, and then executes trades manually through a trading platform.

 

Key Features of Manual Trading

Based on real-time analysis by the human trader

Needs continuous attention

Emotional choices can influence performance

Flexible and intuitive

 

What is Algo Trading?

programs to automatically execute trades on pre-set rules and strategies. Such strategies can be dependent on indicators, patterns, or statistical models Manual vs Algo Trading : Which One Wins in 2025?.

 

Key Features of Algo Trading

Rule-based execution

No influence from emotions

Faster execution of trades

Allows 24/7 trading in markets such as crypto

 

Manual vs Algo Trading: Head-to-Head Comparison (2025)

Let‘s understand the difference between the two on some key considerations:

 

1. Speed and Efficiency

Manual Trading: Gradual execution. It will take time for a human to study the market and put in a trade.

Algo Trading: Lightning fast. Trades are executed in milliseconds.

✅ Winner: Algo Trading

 

2. Emotion and Psychology

Manual Trading: Human emotions such as fear, greed, and indecision tend to affect trades.

Algo Trading: No emotions. The system makes trades based on logic.

✅ Winner: Algo Trading

 

3. Learning Curve

Manual Trading: Simpler to start with for non-tech individuals. More emphasis on understanding strategy than coding.

Algo Trading: Needs to know strategy + some technical or platform knowledge. (But no-code platforms such as Streak or Tradetron now simplify this.)

✅ Winner: Tie – Background-dependent.

 

4. Backtesting and Optimization

Manual Trading: Backtesting is typically performed manually or through charting tools such as TradingView.

Algo Trading: Backtesting can be completely automated with large sets of data within minutes.

✅ Winner: Algo Trading

 

5. Capital Requirements

Manual Trading: Can begin with smaller capital.

Algo Trading: Minimum capital is required on some platforms or brokers to use automation tools.

✅ Winner: Manual Trading (for beginners)

 

6. Scalability

Manual Trading: Handling 2–3 trades or charts is manageable, but anything more is too much.
Algo Trading: Handles multiple assets, accounts, or strategies with ease.

✅ Winner: Algo Trading

 

7. Control and Flexibility

Manual Trading: Complete control over entries, exits, and on–the-fly changes.

Algo Trading: Limited to predefined rules unless you stop/altered the code.

✅ Winner: Manual Trading

 

8. Time Involvement

Manual Trading: Involves a lot of time. Traders spend hours sitting in front of screens.

Algo Trading: Minimal monitoring after setup.

✅ Winner: Algo Trading

 

9. Error Possibility

Manual Trading: Vulnerable to human mistakes such as incorrect order size or accidental clicks.

Algo Trading: Technical glitches can happen (bugs, internet connectivity), but usually more accurate.

✅ Winner: Algo Trading

 

Which Trading Style is More Profitable in 2025?

Profitability is based on:

Quality of strategy
Risk control
Market conditions
Discipline of the trader

That being said, in 2025, more and more traders are inclined towards algo trading because:

Market volatility has increased
Retail-friendly platforms have gained popularity
Sophisticated tools to backtest and execute
API access from brokers such as Zerodha, Fyers, Upstox

 

Why Algo Trading is Winning

 

• Speed = Improved Price Execution
  
• Automation = Less Emotion
• 24/7 Monitoring = More Opportunities  

But manual trading still has its niche—particularly in

Intraday discretionary scalping
Key swing trading
News-based trading

 

Real-Life Example: Manual vs Algo

 

Suppose two traders, Raj and Karan.

Raj trades manually. He watches charts, monitors news, and places trades manually. On volatile days, he makes profits—but fear sometimes leads him to exit too early.

Karan uses an algo based on a trend-following strategy. His system goes in and trails stop-loss automatically without any emotions. He does not overtrade and sticks to logic.

In 2025, with markets becoming increasingly faster and automated, Karan’s strategy is more consistent and scalable in the long term

Manual vs Algo Trading : Which One Wins in 2025?.

 

Platform Make Algo Trading Simple in 2025

These are beginner-friendly platforms that enable algo trading with minimal coding:

 

1. Special code solution

• Marketplace for prebuilt strategies
• No-code visual builder
• Build & backtest strategies without coding
• Option-based algo builder
• Suitable for index traders

 

Things to Consider Before Choosing

 

✅ Opt for Manual Trading if:
You‘re new and need to learn about market behavior
You like real-time news-driven decisions
You want complete control without depending on code

✅ Choose Algo Trading if:
You believe in rule-based logic
Want to avoid emotional trading
Want to scale and optimize your strategies

 

Can You Combine Both?

Yes! Intelligent traders use semi-automated setups

TradingView alerts → Manual Execution

Algo for entry + manual for exit

Algo for small trades, manual for large ones

This blended method provides the advantage of both worlds.

 

Conclusion: Algo vs Manual – Who Wins?

 

In 2025, Algo Trading is the hands-down choice in speed, scalability, and consistency. But manual trading is not outdated. Every style has its uses.

Manual trading can be useful when you’re starting out, as it helps establish a foundation and discipline. But as you advance, look to switch to algo trading for increased efficiency and profits.

The true power is knowing how and when to use each of them.

 

Final Thoughts

 

At the end of the day, your trading success depends not just on the method but on how well you execute it.

👉 Want to automate your trading?
💼 Platforms like Special Code Solution can help you launch backtested, ISO-certified algos with ease and minimal risk.
📩 Contact us to know how to start!