Algorithmic Trading Strategy Selection

In the context of algorithmic trading, various trading strategies are employed to gain an advantage in market execution. One popular strategy involves the use of algorithms to implement trading decisions based on statistical theories and mathematical models. While algorithmic trading can enhance execution efficiency and reduce market impact, it also introduces unique risks and complexities. Consider the following scenario:

A trading firm is exploring algorithmic trading strategies to enhance its high-frequency trading (HFT) operations. The firm is particularly interested in a strategy that involves implementing trades based on market microstructure elements and predicting short-term price movements. Which of the following algorithmic trading strategies best embodies this approach?