Quant Trading (Signal execution)

Risk Management

  1. Risk reward ratio > 1:2
  2. Entry and Exit criteria management
  3. Leverage ratio 5:1 and Max 10:1 on the allocated capital
  4. Risk per trade execution (1-3% of equity)

Money Management

  1. Trading Plan (volatility, asset type, lot size, strategy, duration, number of trades)
  2. Risk expectancy
  3. Position sizing
  4. Stop loss management
  5. Trade review

Trader & Trade execution planning

  1. Preparedness to Trade Scenarios 
    1. Handling of good scenarios (maximizing profit) and excellent scenarios
    2. Handling of bad scenarios (visualisation)
    3. Handling of worse scenarios (visualisation)
  2. Time duration of the trade

Trade execution & management

  1. Enhance profits & Minimize losses
    1. Alertness on the market movement during the trade to cut losses and maximize profits (whole period of the trade)
    2. Tight entry and exit from & out of trade
  2. Visualisation
    1. profit & loss, closing of trade situations
    2. positive and negative momentum and when actions required
  3. Breaking news
    1. Watch market news related to the asset
  4. Watch for support, resistance levels being broken for updated trade closing positions

Algorithmic Trading

Trade Performance evaluation

  1. Failed Trades
    1. Evaluate the areas of improvement in each stages of the trade
    2. Make a note of it
  2. Successful Trades
    1. Evaluate the areas of improvement that could have results in better profits
    2. Make a note of it