© Chris Conlan 2016

Chris Conlan, Automated Trading with R, 10.1007/978-1-4842-2178-5_1

1. Fundamentals of Automated Trading

Chris Conlan

(1)Bethesda, Maryland, USA

Electronic supplementary material

The online version of this chapter (doi:10.​1007/​978-1-4842-2178-5_​1) contains supplementary material, which is available to authorized users.

The fundamental goal of trading is to maximize risk-adjusted return. When developing strategies, we will simulate trading performance in an attempt to maximize risk-adjusted return in simulation. There are many ways to measure risk-adjusted return. They involve examining the shape of the equity curve and the return series.

Equity Curve and Return Series

The equity curveis the trading account value plotted against ...

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