Algorithmic Trading Strategies for Experienced Traders

Mix and match best algorithmic trading strategies for even more efficient trading.

By Marcel Deer

Edited by Dragan Stevanovic

Published May 21, 2024.

a hand touching a digital screen with a stock chart in the background

In 2024, algorithmic trading accounts for 60–75% of trading volume in the US, Europe, and major Asian markets. This type of trading soared because of faster and more efficient trades, automated data analysis, risk exposure control, and uninterrupted 24/7 trading.
Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT to buy/sell ownership of instruments themselves. All the information in this blog is purely educational and should not be considered advice.
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1. Momentum & Trend-Following StrategiesThese strategies utilize market momentum and trends by charting the direction of the prices and then executing trades in the same direction (under the assumption the momentum will continue).
Momentum strategies involve buying instruments on the rise and selling as they start to decline. 
Trend-following strategies rely on moving averages to check the price direction before making trades.
Note: Fortrade offers the ability to trade the price changes of instruments and NOT to buy/sell ownership of instruments themselves. 
2. Mean Reversion StrategiesMean reversion strategies operate on the idea that any movement of the stock price will eventually return to its average value.
Mean reversion traders sell instruments trading above their historical averages and buy those priced below the mean. The strategy hinges on recognizing overbought or oversold trades and then executing with precise timing to catch the price reversal.
With this approach, traders look for instruments that have deviated significantly from their historical averages. 

Algorithmic Trading Strategies for Experienced Traders

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1. Momentum & Trend-Following Strategies

2. Mean Reversion Strategies