Methodology

Concepts and definitions

Definitions of algorithmic, systematic and quantitative trading, backtesting biases, risk metrics and system components follow established quantitative-finance and software-engineering literature and reputable practitioner sources. Where a term is used loosely in the industry, we state the precise meaning we adopt and flag ambiguity.

Formulas and calculators

Where we present formulas (Sharpe ratio, Kelly criterion, risk of ruin, CAGR, drawdown, expectancy), we use the standard textbook definitions and show the assumptions. The client-side calculators implement these formulas directly and run entirely in your browser; results are illustrative and exclude real-world charges (STT, brokerage, slippage) unless stated.

Examples

Examples use Indian-market context — NSE instruments such as Nifty and Bank Nifty, INR amounts and round illustrative figures for clarity. They are teaching scenarios, not live data, backtests or recommendations.

Limitations

All figures and diagrams are educational approximations. Models such as Black-Scholes, Monte Carlo and Kelly rest on assumptions (constant volatility, independence, known edge) that rarely hold exactly in live markets. Past performance and simulated results never guarantee future outcomes. See our Sources.

Last updated 11 July 2026.