A recent analysis by Cred categorizes autonomous trading into three types: incremental, convex, and specialist. Incremental trades are characterized by their stability and high frequency but offer limited returns. Convex trades, though less frequent, provide high returns and are the primary source of profit. Specialist trades are rare but have significant impact. The article emphasizes the importance of traders developing a clear strategy framework based on risk-reward ratios, success probabilities, and frequency to avoid mismatches in strategy and position management.
Three Trading Categories: Incremental, Convex, and Specialist
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