#TradingTypes101 #btc

### 🧠 **2. Strategy-Based Trading**

- **Momentum Trading**: Follows strong price trends (e.g., using RSI or moving averages) until momentum fades .

- **Algorithmic Trading**: Automated systems execute pre-programmed strategies (e.g., arbitrage, trend-following) .

- **Arbitrage**: Exploits price differences of the same asset across exchanges (e.g., buying low on Exchange A, selling high on Exchange B) .

- **High-Frequency Trading (HFT)**: Subset of algo trading executing 1,000s of orders/sec for micro-profits .