Arbitrage and market timing are the most widely used tactics. Any effective
 algorithmic trading solutions must work to increase trading profits and decrease trading expenses. Arbitrage, mean reversion, market timing, and index fund rebalancing are the most widely used tactics. Scalping, lowering transaction costs, and pair trading are additional tactics. The index fund portfolios of mutual funds, such as IRAs and pension plans, are updated on a regular basis to reflect changes in the value of the underlying assets. The "rebalancing" offers algorithmic traders the chance to profit from the anticipated trades based on the number of stocks in the index fund. Algorithmic trading systems execute the trades to ensure the best pricing, lowest expenses, and fastest turnaround times.