Identifying Algorithmic Trading Strategies

As financial markets have evolved, algorithmic trading has become an integral part of executing trades within equity markets. Different types of algorithmic trading strategies exist, each tailored to achieve specific objectives like minimizing market impact, capturing short-term trends, or addressing liquidity issues.

Consider the following scenario: A trading firm implements an algorithm that executes trades based on real-time market data and utilizes thresholds for price changes to initiate trades only when certain conditions are met. This algorithm is designed to adjust trading patterns dynamically based on market conditions. The firm aims to maximize execution efficiency and minimize costs.

Based on this information, which of the following types of algorithmic trading strategies is the firm most likely utilizing?