Algorithmic strategy
A defined set of rules that turns data into target exposures or trading decisions.
Trading glossary
Less jargon.More understanding.
A short reference for the terms you will meet in strategy factsheets, portfolio planning and account setup.
Allocation
The capital amount or percentage assigned to a strategy within your configuration.
Backtest
A model of how rules would have behaved on historical data under specified assumptions.
Benchmark
A reference series used for comparison. Its dates, costs and return calculation should be understood.
Buying power
The capacity available to place orders under your broker’s current account and margin rules.
Cash-flow-adjusted return
A return measure that accounts for money added to or removed from an account, using a defined method.
Correlation
A historical measure of how two return series move together. It can change over time.
Drawdown
A decline from a specified reference value or prior peak. Check the measurement convention.
Execution
The process of submitting and filling orders, subject to broker and market conditions.
Exposure
The extent to which an account is affected by an instrument, market or risk factor.
Fixed-capital allocation
A configuration that assigns a stated capital amount to a strategy, subject to account and execution constraints.
Hypothetical performance
A modeled outcome based on selected assumptions, rather than an actual customer’s executed result.
Leverage
Exposure greater than the capital supporting it. It can amplify losses and introduces additional constraints and costs.
Liquidity
The ability to trade an instrument in the required quantity at available prices.
Margin
Collateral and borrowing requirements imposed by a broker. Requirements can vary by instrument and change over time.
NAV
Net asset value: the net value of an account’s assets and liabilities under the relevant broker calculation.
Netting
Combining overlapping targets in the same security when calculating an account-level position or order.
Out-of-sample
A research period or dataset not used in the stated model-development process. The precise testing design matters.
Paper trading
Trading in a simulated environment. It does not reproduce all live costs and execution constraints.
Risk trigger
A condition that instructs software to attempt a selected response. It is not a guaranteed maximum loss.
Slippage
The difference between an expected or reference trade price and the price actually achieved.
Target weight
The desired exposure to an instrument expressed relative to a specified capital base.
Turnover
A measure of trading activity over a period, calculated under the methodology being used.
Volatility
A measure of variability in returns. It describes one aspect of risk, not every possible loss scenario.
The journal
Go a little deeper.
Algorithmic trading, without the mystery.
Understand what a trading algorithm does, what you control and what happens after activation.
Read the story
Read beyond the return.
A clear sequence for reading a strategy factsheet: thesis, construction, risk, execution and evidence.
Read the story
Know what your risk control actually does.
A practical explanation of drawdown, NAV triggers, disconnecting and closing positions in MyAlgo.
Read the storyYour next step
Your next step is in the portal.
Create an account to explore detailed factsheets and choose a strategy subscription.