TYPES OF ALGO TRADING STRATEGIES

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Algo trading strategies

  • Strategies are based on technical indicators, price movements, volume, and mathematical models to execute trades without human intervention.
  • There are different types of algo trading strategies, including:
🚀Trend-Following Strategies – Trades based on moving averages, breakout levels, and momentum indicators

🎨.Mean Reversion Strategies – Identify stocks that deviate from their average price and expect them to return to the mean.
🔸Arbitrage Strategies – Profit from price differences between markets or instruments.
😊Market-Making Strategies – Provide liquidity by continuously buying and selling at bid-ask spreads.

👉Scalping Strategies – Execute multiple small trades to take advantage of small price movements

📈High-Frequency Trading (HFT) – Uses ultra-fast algorithms to capitalize on tiny market inefficiencies.

CONCLUSION

You can backtest, optimize, and deploy these strategies in live markets to achieve consistent results.


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