Quant Strategies for The Crypto Market

We develop relevant trading strategies and capitalize on opportunities with lightning-fast speed using self-developed computer programs. Atomic Fund is committed to help improve the market.


Understand about different trading strategies
and how the market is reacting to them

Dynamic exchanging is the demonstration of purchasing and undercutting resources in light of term developments to benefit from the value developments on a transient stock outline. The mindset related with a dynamic exchanging system varies from the long haul, purchase and-hold technique. The purchase and-hold methodology utilizes a mindset that recommends value developments over the long haul will exceed the value developments for the time being.

Dynamic merchants, then again, trust that fleeting developments and catching the market incline are the place the benefits are made. There are different strategies used to achieve a dynamic exchanging technique, each with suitable market conditions and dangers innate in the system. Here are four of the most widely recognized dynamic exchanging techniques. Dynamic exchanging is a famous methodology for those endeavoring to beat the normal market.

Arbitrage

The Statistical arbitrage, also known as stat arb, is an algorithmically intensive approach to algorithmically trading financial market assets such as equities, commodities and now cryptocurrency market. It involves the simultaneous buying and selling of security portfolios according to predefined or adaptive statistical models. Statistical arbitrage techniques are modern variations of the classic cointegration-based pairs trading strategy. This strategy is based on short-term mean reversion principles coupled with hedging strategies that take care of overall market risk. Crypto Funds, Hedge funds, mutual funds, and proprietary trading firms build, test, and implement trading strategies based on statistical arbitrage.

Technical Analysis

When a trend breaks, swing traders typically get into the market. At the end of a trend, there is usually some price volatility as the new trend tries to establish itself. TA traders buy or sell as that price volatility sets in. TA trades are usually held for more than a day but for a shorter time than trend trades. TA traders often create a set of trading rules based on technical or fundamental analysis. These trading rules or algorithms are designed to identify when to buy and sell a security. While a technical analysis trading with algorithm does not have to be exact and predict the peak or valley of a price move, it does need a market that moves in one direction or another. A range-bound or sideways market is a risk for technical analysis traders.

HFT

The Scalping is one of the quickest strategies employed by active traders. It includes exploiting various price gaps caused by bid-ask spreads and order flows. The strategy generally works by making the spread or buying at the bid price and selling at the ask price to receive the difference between the two price points. Scalpers attempt to hold their positions for a short period, thus decreasing the risk associated with the strategy. Secrecy, Strategy and Speed are the terms that best define high frequency trading (HFT) firms and indeed, the financial industry at large as it exists today. HFT firms are secretive about their ways of operating and keys to success. The important people associated with HFT have shunned limelight and preferred to be lesser known, though that's changing now.

Market Maker

The market maker strategy have played an important role in the electronic stock market. However, the Market Maker strategies without any forecasting power are not safe while trading. In this paper, we design and implement a twotier framework, which includes a trading signal generator based on a supervised learning approach and an event-driven Market Maker strategy. The proposed generator incorporates the information within order book microstructure and market news to provide directional predictions. The Market Maker strategy in the second tier trades on the signals and prevents itself from profit loss led by market trending. High frequency traders can also act as market makers and play a vital part in the overall ecosystem.


Tags: Bitcoin Arbitrage Market Maker Technical Analysis High Frequency Trading


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