Favorite Algo Trading Strategies That Make Money

Trading stocks in the market is not an easy job. Algo
traders in India should have very vast knowledge about the market, the
technology, the trend, and most importantly, the strategies. Without a strategy
in hand, failure is inevitable, and it becomes even more critical when it comes
to Algorithmic trading.Algo trading involves a pre-computed program that
follows a series of steps to place an order at the correct time and in a very
efficient way. Such high technology trading operations call for a perfect trading
strategy. Algo traders in India should know all about the market strategies to
get maximum results.FEATURES THAT A GOOD TRADING STRATEGY HAVE:● BACK-TESTED: A new strategy cannot be applied
directly in a transaction. Your strategy should have a history of success and
should be back-tested properly. Algo traders in India should always check the
history of the strategy they are using before deciding.● RELEVANCE: All successful strategies may not be
relevant for you. Algo traders in India should remember Algo trading. One
system failure can cost you everything. Hence, that strategy you choose should
have relevance to your transactions and should give maximum results.● FOLLOW THEORY: To perform better, any strategy
should be in agreement with trading theories. Any strategy too far from
theories has more chances for failure. Algo traders in India
should keep in mind that even if a particular theory comes well decorated, you
should always judge its acceptability with trading theories.● BACKUP: Your strategy should come with a backup
itself in case it fails. Having a backup in the fluctuating world of trading is
always wise. Algo traders in India should
invest in a strategy that has a pre-planned backup ready.TRADING STRATEGIES THAT SHOULD BE ON YOUR LIST ● TREND FOLLOWING: The most common and the most basic
of all the Algo strategies is the Trend Following Strategy. This strategy
stresses following the trend of the moving averages, breakouts, pricing
fluctuations, and other digital indicators. ● RISK-FREE STRATEGY: Anyone with deep knowledge about
pricing in the market can make good use of this strategy. This involves buying
a bi-listed stock from a market at a low price and subsequently selling it at a
high price in an adjacent market at differential arbitrage.● PROVEN MATHEMATICAL MODELS: These strategies have a
higher chance of success and need to be formulated by a professional.
Mathematical models like Delta Neutral trading strategy are made, keeping all
the market constraints in mind.● REBALANCING: Algo trade market rebalances their
Index funds from time to time to keep sufficient records of their transactions.
Such refluxes make good opportunities for Algo traders in India as they offer
20-80 basis points for profit.Apart from these, numerous strategies are waiting for
you to try. Make sure to find the right one for you.CONCLUSION:With the right
strategy in hand, you can be the king of the trade market in no time. As a
stock trader in the Algo market, you must know by now how important it is to
have a good trading strategy. So, list out your needs, and do your research to
find the right Algo trading strategy for yourself.