Algorithmic trading, from the ground up
Algorithmic trading turns a trading idea into precise, testable, automatable rules that a computer can execute without emotion. These pages build your foundation — what algo, systematic and quantitative trading actually mean, how a trading system is structured, and how orders and events flow through it — grounded in how the Indian market (NSE, Nifty, F&O) works.
Algo Trading Basics: Algorithmic trading is the use of a computer program that follows a defined set of rules (an algorithm) to place, manage and exit trades automatically. It replaces discretionary decisions with a repeatable, backtestable process covering data, signal generation, position sizing, risk control and execution. It is a discipline of software engineering and quantitative method — not a shortcut to guaranteed profit.
What is Algorithmic Trading?
Core conceptAlgorithmic trading is the practice of executing and managing trades through a computer program that follows a predefined, testable set of rules for …
Rule-Based Trading
Core conceptRule-based trading is trading in which every decision is derived from explicit, pre-specified conditions of the form if X then Y, so that the same ma…
Systematic Trading
Core conceptSystematic trading is an approach in which the entire trading process — from generating ideas to entering, sizing, exiting and risk-managing trades —…
Quantitative Trading
Core conceptQuantitative trading is the design and deployment of trading strategies derived from mathematical, statistical and data-driven analysis, where hypoth…
Automated Trading
Core conceptAutomated trading is the use of software to place, modify and cancel orders programmatically without manual intervention, forming the execution layer…
High-Level System Architecture
ArchitectureA trading system architecture is the arrangement of software components — data ingestion, signal generation, position sizing, risk management, execut…
The Trading Lifecycle
ProcessThe trading lifecycle is the end-to-end process by which a trading strategy progresses from an initial idea through research, backtesting, paper and …
The Order Lifecycle
ExecutionThe order lifecycle is the sequence of states a single order passes through from creation to a terminal state — created, validated, sent, acknowledge…
Strategy Components
Building blocksStrategy components are the distinct building blocks that together make a complete trading strategy — the universe and filters that define what can b…
Event-Driven Trading
ArchitectureEvent-driven trading is an architectural approach in which the trading system is modelled as components that react to a stream of discrete events — m…