Algorithmic Strategy

Definition ∞ An algorithmic strategy involves using automated, pre-programmed rules to execute financial trades or manage digital assets. These strategies leverage mathematical models and computational processes to identify market opportunities and make decisions. In cryptocurrency markets, they can react rapidly to price movements, volume changes, or other on-chain data.
Context ∞ The employment of algorithmic strategies is a prominent feature in contemporary digital asset trading, influencing market liquidity and price discovery. Discussions frequently concern the fairness and transparency of these automated systems, particularly in decentralized exchanges. Regulatory bodies globally are examining the impact of high-frequency algorithmic trading on market stability.