This content originally appeared on HackerNoon and was authored by Writedown
Table of Links
Abstract, Acknowledgements, and Statements and Declarations
Background and Related Work
2010 Flash Crash Scenarios and 5.1 Simulating Historical Flash Crash
Mini Flash Crash Scenarios and 6.1 Introduction of Spiking Trader (ST)
Conclusion and Future Work
3.4 Momentum Trader (MT)
Momentum traders are also called "Chartists". This group of traders buy and sell financial assets after being influenced by recent price trends. The assumption is to take advantage of an upward or downward trend in the stock prices until the trend starts to fade. Instead of looking at the fundamental value of the stock, momentum traders focus more on recent price action and price movement. If the stock price has been recently rising, a long position is established; otherwise, momentum traders will enter a short position. In the proposed model, momentum traders can submit both limit orders and market orders. For momentum traders, the ratio between the number of limit orders and market orders is fixed, which is denoted as ρ.
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\ 3.4.1 Long-term Momentum Trader (LMT)
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\ 3.4.2 Short-term Momentum Trader (SMT)
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:::info Authors:
(1) Kang Gao, Department of Computing, Imperial College London, London SW7 2AZ, UK and Simudyne Limited, London EC3V 9DS, UK (kang.gao18@imperial.ac.uk);
(2) Perukrishnen Vytelingum, Simudyne Limited, London EC3V 9DS, UK;
(3) Stephen Weston, Department of Computing, Imperial College London, London SW7 2AZ, UK;
(4) Wayne Luk, Department of Computing, Imperial College London, London SW7 2AZ, UK;
(5) Ce Guo, Department of Computing, Imperial College London, London SW7 2AZ, UK.
:::
:::info This paper is available on arxiv under CC BY-NC-ND 4.0 DEED license.
:::
[5] We also run simulation experiments with α having value 0.95 and 0.99. Similar experimental results are obtained in these settings, showing that minor changes in α value will not significantly affect the results.
This content originally appeared on HackerNoon and was authored by Writedown
Writedown | Sciencx (2025-07-28T08:20:02+00:00) What Are Momentum Traders?. Retrieved from https://www.scien.cx/2025/07/28/what-are-momentum-traders/
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