A speaker (Kosta Ouzas) describes an algorithmic trading approach that does not forecast market direction but instead reacts in real time to market action using pre-engineered rules—participating systematically when conditions are favorable and stepping aside otherwise to convert volatility into realized gains.
The algorithm isn't trying to guess where the price is going to go next. It isn't forecasting tops or bottoms, and it isn't relying on conviction. It's simply reacting to what the market is doing in real time, according to rules that were engineered ahead of time. That's what's so cool about this, and that's what allows volatility to be converted into those realized gains I was talking about. Not by being right about direction, but by participating systematically when conditions are favorable and stepping aside when they're not.
