Technical Checklist

Here is a quick checklist of all the things you need to take care of before starting your algo trading journey.

Algorithm Trading Checklist:

1) Strategy Checklist:

• A programmable strategy 
• Stock screening & Entry/Exit rules
• Position Sizing rules

2) Software Checklist:

• Programming language or a tool to code the strategy rules
• Integrate the executable program the broker's terminal
• Backtest the strategy on historical data & optimize parameters

3) Hardware Checklist: 

• Computer with at least 16GB RAM &  Quad-Core CPU.
• High bandwidth internet connection
• Power & internet backup

4) Data Checklist:

• A reliable source of historical & real-time data for the stocks/commodities.
• Data backfill of at least 5 years for backtesting
• Live streaming of data into the algorithmic system 

5) Execution Checklist: 

• VPS server to deploy the algorithmic system
• Get exchange approvals if required
• Monitor generated trades and Optimize regularly 

6) Miscellaneous Checklist:

• Scalable hardware & software with regular backups
• Update anti-virus & firewalls to prevent any security breach
• Optimize performance to reduce order latencies.