Algorithmic trading is using software to execute trades according to a predefined set of rules - entries, exits, sizing, and risk - instead of a human placing each order by hand. The "algorithm" is just the codified strategy: if these conditions are met, do this.

Is it legal for retail?

Yes. Automated trading through your own brokerage account, via official retail APIs, is fully legal in the U.S. for individual traders. Brokers like Alpaca and Tradier provide APIs specifically so software can place orders on your behalf. You are not doing anything exotic - you are automating the same orders you could place manually, just faster and more consistently.

What it is good at - and not

Automation excels at the things humans are worst at: reacting in milliseconds, executing the same rule the 200th time exactly as the first, and never revenge-trading after a loss. What it cannot do is guarantee profit. An algorithm is only as good as its logic and risk controls, and markets change. Automation removes emotional error; it does not remove market risk. Anyone promising the latter is selling something.

Automation does not beat the market by magic. It beats the version of you that is tired, tilted, and chasing at 2 p.m.

Custody: who holds the money?

A key distinction for retail: a well-designed system is non-custodial. It connects to your own broker account via API keys and places orders there - it never holds, transfers, or withdraws your capital. Your money stays in your name at your broker the entire time. That is the model NoVo uses, and it is the model you should insist on from any automated tool.