Algorithmic Trading Strategy

Algo traders deploy automated systems that monitor dozens to hundreds of markets simultaneously, placing and canceling orders based on pre-programmed rules. Their maker percentage typically sits between 50% and 70% — high enough to benefit from maker rebates and favorable queue positioning, but not so high that they're purely passive. When their models detect a short-term opportunity, they switch to taker mode and hit the order book directly.

The hybrid approach gives algo traders flexibility that pure strategies lack. In calm markets, they earn spread by posting limit orders. When volatility spikes, they can pivot to directional taker trades within milliseconds. This adaptability, combined with short holding periods and broad market coverage, produces a consistent but modest edge per trade that compounds across thousands of executions.

On prediction market order books, algo traders are identifiable by their distinctive order pattern: moderate-to-high maker percentages (50–70%), short average holding times (under 8 hours), and activity across 50+ markets with 8+ trades per market. They're the traders whose activity looks too systematic to be manual but doesn't fit the pure market maker or pure scalper mold.

The most successful algo traders on the platform maintain sophisticated execution infrastructure that manages order placement, risk limits, and position sizing automatically. They rarely hold positions overnight and prefer liquid markets where their systems can enter and exit without significant slippage. Their profiles show steady, incremental P&L growth rather than the large swings typical of directional or event-driven traders.