Literally, there are thousands of potential algorithmic trading strategies, and the following are the most common quick start strategies:
Trend following algorithm: determine your advantage by determining the obvious order flow direction. This advantage may last more than a few months, or it may last more than a few minutes. The key to the success of this strategy is to determine the running time. Select a point to enter. The shorter the time frame, the more frequently you trade, because the trend will change faster and you will receive more signals.
Momentum-based algorithm strategy: Momentum algorithm hopes that futures contracts will move in one direction quickly under high trading volume. The edge tries to enter quickly at a pause, gain kinetic energy and then exit at the next pause. This algorithm will not win the big winner. On the bright side, it shouldn't have big losers. Momentum strategy in the direction of order flow is usually considered as a wise transaction.
Contrarian algorithm: this strategy usually determines the saturation point of momentum and "dilutes" the trend instead of trading with momentum. Contrarian trading is a special form of capital allocation, which is not suitable for timid people. Because of the algorithm, the last one is particularly correct! In a period of time, the price trend has good volatility. If you are trading at a loss, you are likely to "trade at a loss". The algorithm has changed a lot. In today's algorithm-driven world, multiple algorithms will trigger at the same time, and prices will explode in one direction. Don't let go of novices who go against the trend easily.
Regression mean algorithm: imagine that a rubber band usually expands to "10". When it reaches this distance, it will pull back or return to the normal distance. This is a regression to the average algorithm transaction. When the futures contract exceeds the expected range, your algorithm will analyze the data and place an order. The goal of this transaction is to enter the market on time at an extreme price point in order to expect a profit reversal.
Scalper algorithm strategy: Some markets provide opportunities to track big buyers and sellers. The strategy here is "capture propagation". This means buying, then selling and earning a few points. For many years, this algorithm has been the primary task of many day traders/floor traders. Narrowing the spread and faster computers have brought challenges to manual traders. One door closes and another door opens, which provides opportunities for intelligent algorithm developers and traders to expand.
HFT |? High-frequency trading algorithm: this is the algorithm that gets all the publicity. Privileged quantum wizards perceive money-making machines. The HFT program will be executed within one millisecond, and a so-called "* * *" server needs to be installed near the switch. The speed of execution is crucial to success.