Building Blocks Of Creating an Algo Trading Strategy

The building blocks of a successful Algorithmic Trading Strategy are:

1. Universe Selection

This is the selection of assets that you want to trade, such as Bitcoin, Ethereum etc.

1. Alpha Creation

This is essentially the set of rules that you want your Algorithim to follow in order to generate trading signals and enter/exit positions.

1. Portfolio Construction

This is more important for if you're using a selection of cryptocurrencies as opposed to using only 1 cryptocurrency in your algorithm. This is the proportion of your portfolio that will be Invested by the algo per trade.

1. Execution Model

This is how your algorithm will execute trades. For example, orders can be market orders - which will execute at the current market price, Limit orders - which will only execute if price reaches a certain level etc.

1. Risk Management

This is one of the most important considerations for your algorithm. To explore this more please head back to the website: and visit our Risk Management section.