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Algo Trading

Technical Checklist

Here is a quick checklist of all the things you need to take care of before starting your algo trading journey.

 

Algorithm Trading Checklist:

 

1) Strategy Checklist:

  • A programmable strategy 
  • Stock screening & Entry/Exit rules
  • Position Sizing rules

2) Software Checklist:

  • Programming language or a tool to code the strategy rules
  • Integrate the executable program the broker's terminal
  • Backtest the strategy on historical data & optimize parameters

3) Hardware Checklist: 

  • Computer with at least 16GB RAM &  Quad-Core CPU.
  • High bandwidth internet connection
  • Power & internet backup

4) Data Checklist:

  • A reliable source of historical & real-time data for the stocks/commodities.
  • Data backfill of at least 5 years for backtesting
  • Live streaming of data into the algorithmic system 

5) Execution Checklist: 

  • VPS server to deploy the algorithmic system
  • Get exchange approvals if required
  • Monitor generated trades and Optimize regularly 

6) Miscellaneous Checklist:

  • Scalable hardware & software with regular backups
  • Update anti-virus & firewalls to prevent any security breach
  • Optimize performance to reduce order latencies.   

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Units 8/10