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Favourite Crypto Trading Strategy and Why — Algo Perspective

r/algotradingcryptoContinuous (automated)by reddit_community

Algorithmic crypto strategies: market-making (collecting spread), momentum following, mean reversion. Market-making needs order book understanding. Best approach varies by regime.

ENTRY RULES

Market-making: Place limit orders on both bid and ask sides | Momentum: Enter when price breaks above/below key level with volume | Mean reversion: Enter when price deviates 2+ ATR from moving average

EXIT RULES

Market-making: Close when spread narrows or inventory exceeds threshold | Momentum: Trail stop with 1.5x ATR | Mean reversion: Exit when price returns within 0.5 ATR of mean

INDICATORS

Order FlowMoving AverageATRVolumeOrder Book

ORIGINAL POST

167
r/algotradingposted by reddit_community

Favourite Crypto Trading Strategy and Why — Algo Perspective

Discussion on favourite crypto trading strategies from an algorithmic perspective. Market-making: placing limit orders on both sides of the order book and collecting the spread. Requires understanding of order book dynamics, spread management, and inventory risk. Also covers momentum following and mean reversion on hourly timeframes. Best approach depends on market regime.

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