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What are some common types of trading algorithms?

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  • Trend-following algorithms monitor market momentum to identify and capitalize on directional trends.
  • Arbitrage algorithms seek to exploit price discrepancies across different markets or securities.
  • Mean reversion algorithms are designed to identify and trade securities that have deviated from their historical average price.

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What are some common types of trading algorithms?

Hey folks, just been pondering lately on something and wanted to hear what you all think. So, I've been getting into the trading sector recently and I'm realizing that technology plays a massive role in it. Algorithms, eh? Who knew they weren't just confined to our computer science textbooks? Anyhow, it's piqued my curiosity and now I'm wondering about the different types of trading algorithms that are commonly used. Are there major ones I should know about? How do they operate and what makes them unique? Would love to get some insights into this. Thanks, all!

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