Lompat ke konten Lompat ke sidebar Lompat ke footer

Most Popular Trading Strategies in 2022

In this post, you will create very popular bottom trading strategies that have influenced many successful algorithmic and quantitative trading systems. This strategy is a proven analytical trading strategy, which has been applied not only by human algo traders but has also been used by established trading desks and other financial institutions.

As you may have come across by now, it is often very difficult to come up with an idea when trying to conceptualize your next automated trading system. Often you are just stuck with what you already know, and your mind can't go away from this boundary.

Price- Momentum

A price-momentum strategy is based on buying the best-performing stocks and selling the worst-performing stocks, against a set benchmark. Benchmarks of ability can be in the form of buried returns, general returns, or risk-matched returns. The strategy can be long-only– you open a long position in the top 10% of the best performing stock, or long-short, where you buy the top 10% of the best performing stock and sell the top 10% of the worst performing stock.

Earnings- Momentum

The momentum entry strategy engages the same common sense as the price momentum strategy above– buy or sell the top or bottom 10% of the stock according to performance. Rather, it is a benchmark for its performance. In the price-momentum strategy, the benchmark for performance is return, on the other hand, in the earning-momentum strategy, the criteria are based on income.

Message Number- To-Price

This strategy is also based on buying the top winners and selling the bottom losers, a kind of price momentum and revenue momentum strategy above. The problem is, the benchmark for determining ability is based on the book-to-price (B or P ratio). The portfolio in this strategy consists of buying the top 10% of shares with the highest B or P ratio and selling the bottom 10% with the lowest B or P ratio.

Low Volatility Anomaly

The small-volatility anomaly trading strategy relies on the observation that the future returns of the small-return volatility portfolio exceed the returns of the large-return volatility portfolio. While this is anti-impulsivity due to the common belief that greater risk creates bigger returns, the low volatility anomaly strategy proves to be pretty good returns.

Implied Volatility

The implied volatility strategy is based on observing the volatility of alternative put or call stocks. Observations show that stocks with the most gains in call options suggest volatility over the first month generally leading to larger future returns. In another part of the observation, stocks with the most escalation on put alternatives suggest volatility over the first month generally leads to smaller future returns. Finally, the trader can open long positions in stocks at the top 10% according to this benchmark as well as short positions in stocks at the bottom 10%.

Multifactor Portfolio

A multifactor strategy depends on buying and marketing short stocks stemming from more than one aspect. The factors observed can be in the form of numbers, momentum, volatility, and others. Finally, a trader can mix up the uncorrelated factors and extract bonus numbers for the portfolio.

Pair Trading Strategy

Pairs trading is a classic illustration of a mean-reversion strategy. The initial stages in a companion trading strategy are based on identifying a pair of stocks with highly correlated historical capabilities. The next stage of the strategy is to monitor how the relationship between the two stocks changes from duration to duration. When mispricing is observed, traders sell very expensive shares and buy very small shares.

Generally Single Movement

In general, a single move is one of the most basic trading strategies. It is based on legacy prices (stocks, futures contracts, currency counterparts, etc.) that have typically gone up or down. The situation in this system is pretty basic. When the price crosses the general move, the trader opens a long position. On the other hand, if the price crosses the general trend, the trader opens a short position. This can be undertaken as a long-only, short-only, or long-short strategy in a single or multi-asset setup.

Displacement Generally Moving

Crossroads in general a move is another very well known trading strategy. It depends on 2 generally moving – the fast (short time span) and the slow (long time span). The common sense of crossover trading is generally moving very close to the strategy generally moving single. What is different is that traders look for intersections between generally fast and slow movements, not just market prices and generally single movements.

Moving Averages Crossover

The cross-sectional strategy is generally moving up, usually moving bonuses with different lengths, not only usually moving fast and slow in the strategy above. Bonus markers can be used to sort out illegal tags. For example, it turns out to open a long position when it usually goes fast above the slow one, traders usually wait for the third move to cross before opening their position.

Pivot Point Support And Resistance

Pivot point support, as well as resistance strategies are based on pivot point trading markers. This popular marker has 3 lower levels – center, support, and resistance. The middle level is calculated as generally the highest, lowest, and first close of the day. The resistance level is calculated as 2 times the middle level minus the previous day's low. The support level is calculated as 2 times the middle level minus the previous day's high. In his strategy, the trader opens long positions when the market price crosses the center level upwards and liquidates it when it reaches the resistance level. The sign of the short position factor is when the market price crosses the middle level to the bottom and the target succeeds when the support level succeeds.