Dirty Strategies in Algorithmic Trading: Momentum Ignition Strategy ⛏️ - YouTube
https://www.youtube.com/watch?v=aAYAh9e7KxA

Transcript:
(00:00) in this video we're gonna talk about what is a momentum ignition algo stay tuned hey traders are very warm welcome to you okay so you probably haven't heard of this but we have these owl goes out there which are really quite abusive algos and they're virgin on the edge of illegality in the eyes of the SEC but we're gonna get into that now but what is it what is a momentum ignition algo so momentum ignition algo is a trading algorithm that attempts to encourage other participants to trade quickly
(00:40) causing a rapid price move in other words this algo will go out there anywhere either spiked price quickly in one direction over a certain level we've seen kind of retail versions of that by either stop hunt type thing or a burst of volume yuan direction basically they're doing something that's going to induce other participants to trade off the back of that move so if we put it in simple terms let's say we have a high and we have an algo which wants to create momentum ignition by creating some by stops above that high this is
(01:17) very kind of what keep me very in a simplified level here but let's assume that for this example they would then quickly buy a lot of stock or a lot of futures contracts or whatever it may be to force the price through that level to create momentum to create hopefully momentum ignition they're assuming and they're hoping and they're guess they've got kind of with other analysis on this I would assume that that's going to cause a lot more participants to jump in based on what they've caused and then cascade
(01:46) and create some sort of momentum now the way they profit from that is by being pre positioned either with the Buy and they've already bought knowing that it's going to create momentum they can sail into and making that little chunk or they going to fade that so the money's made for mother being pre-positioned precision already or they're in a trade a mean reversion trait so in other words they know that they've caused that momentum ignition so they're going to sell into that knowing that probably
(02:12) because they're the only person who cause there we could probably drift back to the mean now I use the high and the low as a kind of example so that we can kind of picture in our minds but ultimately you know it's gonna happen anywhere they believe they can get some other algo or some of the participants to get involved and actually you know if we go a little bit deeper into it it may not just be kind of stops and generally isn't you've got a price here and let's say prices choke me along and they just
(02:39) give it a little bit of a nudge the downside on some high volume all other algos are going to see that and a lot of other algos are programmed to respond to that by joining the herd because this might be a precursor to news so they're kind of almost spoofing other algos by saying hey this is news and news is coming out jump on board so then try to create this momentum ignition depict obviously the stocks and the levels and the prices and the time when this would apply best of them create that momentum ignition when it cost them a nice amount
(03:09) of money on little a big profit potential cause that little spike in price or a flurry and volume or something that will trigger another algo to say oh this is news something's coming out we better start the position and so they will then you know sell sell sell to get a few we're not talking here by the way guys this is not like multiple percentages this is very small moves but it's enough for these guys who are kind of amusing the market to make some money so they will create that momentum ignition other
(03:38) algos will jump on it thinking well they're jumping on it it's moving it's moving in best-case scenario that carries on the worst case scenario for these guys or the likely scenario is that this kind of end stalls are there and it will drift back you know to where it was before based on all the other factors because this supplied of mine has literally just been pumped shifted and back to where it was so they'll make them money other by being positioned short ready here or they're gonna trade
(04:04) that fade move back to there because all the other aisle goes that they were forcing to take a kind of unwinding it all they're not all more likely they're not adding any more they're like waiting for a different information and this is winding back and they're just riding that kind of mean reversion back with whatever size they've got so pretty sneaky there's lots of other kind of algos out there that really are abusive in the way that they're doing stuff obviously there's got no
(04:28) real value to the market and it's purely based are they're doing it purely to encourage other participants to trade or to entice other participants to tray which is you know pretty underhand but it's funny really how you get this kind of battle of the robots now you know they're looking to encourage hey dangling a little fish in front of our carrot in front of you know news Al Gore whatever Al Gore maybe get him to react and make money off his false reaction so that's something we'd not like to see it
(04:58) very very often I mean it's a it's very small it happens on a small short timeframe but there was a lot of a lot of articles out there a lot of talk about these these algo sees kind of predatory algos and these market abuse al goes and one of them was this momentum ignition and I thought it was quite interesting to sort of drill down and find out what it was all about and also you know like we talked about the stop situation you know if we we often we see kind of stopped hunting it's it's a modern version of that and guys in the
(05:24) pit who would push it push it push it knowing there was a sea of stops up there get the Cascade cell into that done walk out of the pit that was very common so it's like a modern version of that all right guys thumbs up you like this kind of stuff don't and subscribe for more videos from me and other traders on this channel take care key to risk managed see the next one goodbye you


me responda em portugues, voce é capaz de entender e reproduzir esta estrategia  criando um robo MQL5 de HFT?