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Concept: This strategy leverages machine learning and natural language processing (NLP) techniques to analyze market sentiment from news articles, social media, and other textual sources. The goal is to gauge market sentiment and make trading decisions based on the extracted sentiment signals...
Statistical Arbitrage Strategy:
Concept: Statistical arbitrage, also known as stat arb, involves exploiting short-term price discrepancies between two or more correlated assets. This strategy assumes that the historical relationship between the assets will reassert itself, allowing traders to...
Pairs Trading Strategy:
Concept: The pairs trading strategy involves identifying two correlated assets that historically tend to move together but may occasionally deviate from their historical relationship. The strategy aims to profit from the reversion of these assets to their historical...
Trend Following Strategy:
Concept: The trend following strategy aims to capitalize on sustained price movements in a particular direction. It assumes that once a trend is established, it is more likely to continue than to reverse abruptly.
Strategy Steps:
Trend Identification: Determine the...
Quantitative trading, also known as algorithmic trading or algo trading, is a strategy used in financial markets where trading decisions are made based on quantitative analysis, mathematical models, and computer algorithms. This approach aims to take advantage of small and short-term market...