Market Suitability

Market Suitability

Algolang includes a suitability rating system that helps match strategies to appropriate markets.

Rating scale

RatingDescription
Not SuitedMarket characteristics are incompatible with the strategy type
ModerateMarket may work but is not ideal
GoodMarket is a good fit for the strategy type
StrongMarket is an excellent fit

Strategy types

Markets are rated for the following strategy types:

  • TrendFollowing – markets with persistent directional moves
  • MeanReversion – markets that oscillate around a mean
  • Volatility – markets with exploitable volatility patterns
  • Breakout – markets with clear support/resistance levels
  • Spread – markets suitable for spread trading
  • Seasonal – markets with seasonal patterns

Filtering by suitability

Use --market-suitability to filter runs based on market ratings:

algo run --strategy kbt --symbols <all \
    --market-suitability "TrendFollowing>=Good"

This runs the strategy only on markets rated Good or Strong for trend following.