1. Trend Following

  • Uses moving averages, breakouts, or momentum to follow established trends.
  • Best for trending markets; requires patience during drawdowns.

2. Mean Reversion

  • Targets temporary price deviations from a mean or channel.
  • Works well in range-bound markets; beware of strong trending regimes.

3. Scalping / High Frequency

  • Many small trades capturing tiny profits; needs low latency and very tight risk controls.
  • Higher transaction costs — test carefully.

4. Arbitrage & Market-Making

  • Exploit price inefficiencies across venues or instruments.
  • Complex to implement and often requires connectivity to multiple venues.

5. Statistical / Pairs Trading

  • Trade divergence between historically correlated instruments.
  • Rely on mean reversion of the spread; robust risk management required.

Implementation Tips

  • Start simple, backtest carefully, include transaction costs and slippage in simulations.
  • Use paper trading to refine parameters before going live.