What Is Trading strategy?

A trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets.

It involves analysis to identify specific market conditions and price levels. There are many different types of trading strategies, such as

• Moving-average cross strategies like EMA

• Trend-following

• Market-making (see AMM for decentralised finance)

• Arbitrage

• Scalping

• Portfolio construction model

• Market neutral

• Yield farming

Further strategies can be classified by their activity and risk profile as

• Directional strategies

• Active strategies

• Passive strategies

The trading strategy can be automated as algorithmic trading and thus become automated trading strategy.

Trading Strategy can also refer to Trading Strategy Protocol which is a solution for creating trading strategies for decentralised finance.

See also

• Trading Strategy Protocol

• Algorithmic trading

• Technical analysis

• Automated trading strategy

• Best trading algorithm

• Alpha generation platform

• Equity curve

• High-frequency trading

• Market neutral strategy

• Factor investing

• Yield farming