{"id":4938,"date":"2020-10-15T16:03:17","date_gmt":"2020-10-15T14:03:17","guid":{"rendered":"http:\/\/joapen.com\/blog\/?p=4938"},"modified":"2023-02-25T00:56:26","modified_gmt":"2023-02-24T23:56:26","slug":"algorithmic-trading-wardley-map","status":"publish","type":"post","link":"https:\/\/joapen.com\/blog\/2020\/10\/15\/algorithmic-trading-wardley-map\/","title":{"rendered":"Algorithmic Trading Wardley Map"},"content":{"rendered":"

I have been drawing this map as part of a conversation on slack with other user (Tom) where I was trying to figure out what map and needs are required.<\/p>\n

So I started with the user: the algorithmic trader. This person wants to implement an algorithm for executing trades automatically without human intervention. So, the design of a system, the back-test of the algorithm and the execution of the final tested code are its main needs.<\/p>\n

Then, you could decide if to do it by yourself or using one of the existing platforms. I know Quantopian a little bit<\/a>, so I have used this one as reference for the map (you can use others).<\/p>\n

I have drawn the lines in different colors to differentiate the selection of a user that wants to take one route or other: user that builds its own environment (green) or that uses a platform (orange).<\/p>\n

I have doubts with the practice, in the few knowledge I have, practices depends more on the models and technique that an author writes about.<\/p>\n

The Wardley Map<\/h1>\n

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The typical steps that an algorithmic trader do are:<\/p>\n

    \n
  1. Design the system starting defining the trading rules that wants to put in place. Once done it’s moved into an algorithm.<\/li>\n
  2. The algorithm is tested on a data set, and results are evaluated through a set of indicators and standard values that traders use to work with.<\/li>\n
  3. Once a tested algorithm is considered as valid, the code is executed in production with real money.<\/li>\n<\/ol>\n

    Key aspects of the map:<\/p>\n