What kind of programming trading strategy types can be divided into?

Trading strategy 1, intraday high frequency trading

As the name implies, it is to frequently do T+0 transactions during the day. As long as the profit of each operation is higher than the handling fee, the position will be closed.Each profit and loss is not much, but the number of transactions per day may be very frequent, reaching hundreds or thousands, and the accumulated income will be very considerable.At the same time, the risk is very low since the losses on each transaction are limited.

The advantages of intraday high-frequency trading are that the risk is small and the profit is stable.

Trading Strategy 2, Trend Trading

Trend trading can be divided into intraday short-term trend trading and overnight medium and long-term trend according to the trading cycle.We mainly introduce overnight trend trading. Trend trading generally uses technical analysis as the basis for judgment. Commonly used moving average systems, various technical indicators, etc.

When using technical analysis to make judgments, it often occurs that a certain indicator has a very good effect on a specific variety, but the effect on other varieties is average, and even leads to losses due to inappropriateness.Therefore, for different varieties, or different periods of the same variety, it may be necessary to use different models, or adjust the parameters of the models to obtain more ideal returns.

Trading Strategy 3, Arbitrage Trading

Arbitrage trading is a low-risk, stable-return operation method, and it is one of the most widely used programmatic trading strategies. A large number of foreign hedge funds use arbitrage trading as the main trading method.

Depending on the type of trade, the risk of arbitrage varies.In terms of futures arbitrage, it is an index arbitrage. When the price difference between the futures and the spot index is too large, a position is established to earn risk-free returns.

Other arbitrage methods are non-index arbitrage, and there is a certain uncertainty in the price difference trend of two or more varieties, so there is a certain risk.According to statistics, only 3.5% of all programmatic trades are index arbitrage, while the remaining 96.5% are non-index arbitrage.

Trading strategy 4. Combination strategy

The prototype of programmatic trading is to operate the investment portfolio. When the amount of funds is huge, it is necessary to reduce unsystematic risks by diversifying investment, that is, to manage the investment portfolio.Such as buying a basket of stocks, or using multiple trading strategies in a portfolio.

Programmatic trading can help investors to perform detailed management and analysis of each trading product or strategy in the investment portfolio, thereby reducing trading risks and improving management efficiency.

Trading strategy 5, other strategies

There are also hedging strategies, hedging strategies that use warrants to hedge stock risks, etc.After the small contracts and options of stock index futures are listed, the trading strategies will be more abundant.