© 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 ...

Get Automated Trading with R: Quantitative Research and Platform Development now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.