What I trade
I engage in two types of trading activities: Realtime trading (RTT) and End of Day Trading (EoDT).
Realtime trading (RTT): Mainly in the crypto space, I deploy algorithms that trade on market inefficiencies. At their core these algos trade on price differences between markets or venues – for example is BTC is trading at different prices between two exchanges. The market inefficiencies typically only last for short periods of time (seconds to minutes) so most of the time is waiting for markets to diverge enough for trades to be executed before the prices revert. At the time of placing the trade there is a definite expectation of making a profit as long as the prices don’t change before I can execute my trades.
End of Day Trading (EoDT): These are either portfolios of instruments traded over longer periods, or algorithms that trade on intermediate time frame Here the algorithm will only run once a day (typically after market close) and decide if a trade will take place. This type of trading if more focused on prediction of prices and the probability of making a profit if the markets behave as they have done before. For example mean reverting algorithms work on the principle that market overshoot price moves and show a tendency to revert. This is never guaranteed for a single trade, but works as a probability of happening over many trades over a longer period of time.