Trading strategies are employed to identify potential opportunities to make money. In a traditional system, they require an experienced trader to do this job. In algorithmic trading, people are trying to use the expertise of an experienced trader to make the algorithm robust and powerful. Few are successful because the market is not predictable or works based on mathematical models. Still. people are making money using this approach. Let's now discuss some of these strategies that help in identifying a potential trade:
- Trend-following strategy: This is the most common type of strategy that most traders use, whether it is to perform an actual trade or just to do the analysis. This strategy doesn't involve making any sort of prediction and is purely based on the mathematical model. It will trigger a trade when the price follows a predefined...
