What is Algorithm?
The term "algorithm" refers to a collection of guidelines to be followed in computations or other problem-solving procedures. This sums up the algorithm definition. It is also a process for handling a mathematical equation in several iterations, sometimes using recursive operations. It is often easy or complex, depending upon the nature of the problem. What are the characteristics of an algorithm?Simple and Conclusive
The algorithm should be simple. Each of its stages should be distinct and ultimately reach a single conclusion.Well-oriented inputs
When an algorithm requires inputs, they should be precise and well-defined.Concise and clear outputs
Outputs should be well-defined. The algorithm must explicitly state and well-define the outcome to be generated. Finite nature
The algorithm should be limited; it must end after a finite time.Attainable in nature
The algorithm should be simple, general, and realistic, and it must be able to be implemented with the appropriate resources. It can't include any futuristic technologies.Independent Language
The developed algorithm must be language-independent. It must be composed of simple commands that may be executed in any language and provide the same results.What are the properties of an algorithm?
- It should end its course after a limited time.
- It should generate at least one significant output.
- It should receive zero or more input.
- It should be result-oriented, giving the same output for the same input.
- Every step should have relevance in the algorithm producing effectual output.
What are the pre-requisites of an algorithm?
What is the algorithm definition?
- The 'problem in question' that the algorithm is supposed to address should be a defined problem specification.
- The 'problem in question' restrictions must be considered when addressing it.
- The information should address the 'problem in question'.
- When the 'problem in question is resolved, the output is expected.
- Within limits, a solution to the challenge is found.
When using any electronic device such as a phone, computer, laptop, or calculator, Algorithms are used. They assist in programming to get the expected result. The algorithms are dependent on the language. What are the advantages of an algorithm?
It is easy to comprehend. Algorithms are designed in a step procedure to give an output of a problem. With the help of an Algorithm, the problem is fragmented into smaller doable steps, and it gets more accessible for the developer to make it into an actual program.What are the disadvantages of an algorithm?
Writing an algorithm is a long and time-consuming process. It can be tough to decipher sophisticated reasoning using algorithms. The process gets challenging when demonstrating branching and looping expressions.How do banks take the assistance of algorithms?
Algorithmic trading is used by banks, including retail and institutional traders. Financial firms and hedge fund managers utilise algorithmic trading to execute huge trade orders or ensure quick trading is included. As algorithm trading is comparatively safe, assuming to have built good techniques to process. Some algorithm approaches are purchased. However, they still require adequate computing power to process.Disclaimer: This content is authored by an external agency. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.