What is algorithmic trading Classification of algorithmic trading

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In quantitative What is forex rebate, accord cashback forexg to the different degrees of initiative of the algorithms in each Whatisforexrebate trading, algorithmic trading can be divided into three categories: passive algorithmic trading, active algorithmic trading, and comprehensive algorithmic trading Passive algorithmic tradingPassive algorithmic trading, in addition to using historical data to estimate the key parameters of the trading model, does not actively choose the timing of trading and trading according to the bestforexrebate conditions The volume of trading, but in accordance with a set trading policy passive algorithmic trading is the most mature and most widely used, such as the most used in the international market volume weighted average forexrebatenetwork (VWAP), time weighted average price (TWAP), etc. are passive algorithmic trading VWAP strategy is one of the most commonly used passive trading strategies, with simple and easy to operate and other characteristics, the basic idea The basic idea is to make their own volume submission ratio and the proportion of market turnover to match as far as possible, in order to reduce the impact on the market at the same time, to obtain the average market transaction price standard VWAP strategy is a static strategy, that is, before the start of the transaction, the use of existing information to determine the submission strategy, after the start of the transaction in accordance with this strategy to trade, without taking into account the information during the transaction improved VWAP strategy of The basic principle of the improved VWAP strategy is: when the market price is higher than the average market price, according to the trend of the market price, the submission volume is reduced to varying degrees to ensure the low submission volume at the high price level and to prevent the excessive backward aggregation of the submission volume due to the continuous price increase; when the market price is lower than the average market price, according to the trend of the market price, the submission volume is increased to varying degrees to ensure the high submission volume at the low price level and to prevent the continuous price increase. At the same time, it can prevent the price from continuing to go lower and the submission volume is excessively completed in advance Active algorithmic trading Active algorithmic trading is also called opportunistic algorithmic trading These trading algorithms make real-time decisions based on market conditions, judging whether to trade, the number of transactions, the price of transactions, etc. Active trading algorithms gradually turn their attention to price trend forecasting in addition to efforts to reduce slippage, such as Judgment of the market price in the direction of there is unfavorable movement of the trader, it will postpone the transaction, and vice versa to speed up the transaction when the market price there is a strong mean reversion phenomenon, must quickly seize each favorable to their own offset Comprehensive algorithm trading comprehensive algorithm trading is a combination of the first two that contains the established trading objectives, the specific implementation of the transaction process will also be whether to trade This type of algorithm is a common way to first split the trading orders, distributed into a number of time periods, each time period, the specific how to trade by the active trading algorithm to judge the combination of the two can achieve the effect of an algorithm alone can not be achieved

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