The trading strategy is the brain of the system. This is where your algorithm representing your trading idea will be implemented. Let's have a look at the diagram:

The diagram shows the following:
- The trading strategy is divided into two main components: signal and execution. In this book, the numerous strategies we saw in the first part can be called signal.
- The signals represent the indication of getting a long or a short position. For instance, in the dual moving average crossover momentum strategy, when the two average lines were crossing, a signal to go long or go short was generated.
- The signal component of this strategy only ...