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Learn Algorithmic Trading
book

Learn Algorithmic Trading

by Sebastien Donadio, Sourav Ghosh
November 2019
Beginner content levelBeginner
394 pages
10h 31m
English
Packt Publishing
Content preview from Learn Algorithmic Trading

Risk management system

Similar to problems with quantifying and measuring risk estimates for a trading strategy in the absence of a very accurate backtester, it is also difficult to build an optimal risk-management system. Also, we saw in the chapter on risk management that we want to not only build a risk management system, but also a system of slowly increasing trading exposure and risk limits after good performance, and lower trading exposure and risk limits following a poor performance. Without a good backtester, this aspect of trading strategy development and deployment suffers and causes issues when deployed to live markets as it deviates from historical expectations.

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Publisher Resources

ISBN: 9781789348347Supplemental Content