Short dialogue from a YouTube video (creator: Kosta Ouzas) describing an algorithmic trading strategy that positions itself before rapid market moves. The speakers discuss a one-hour episode where the algorithm accumulates positions ahead of a short squeeze and subsequent reversal, then takes profit by selling longs and removing shorts during the move.
It sells into, that move takes profit. So then when the market makers bring the market back down to wreck the longs, what does our algorithm do? Take positions while the longs are getting. This is all within one hour. One hour time. That's crazy.
And it's like, when you look at that, it almost feels predictive. But what the, what the algorithm is actually doing is it's always in position before the move happens. And then we take profit with the move. Right. So the whole concept is building up before the move happens. It doesn't need to be predictive, it just needs to make sure that the entries are placed before we go up.
So look what happened. You took out the shorts, the algorithm sales long positions that had accumulated earlier.
