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Trading Bots

The measure of your strategy's performance relative to the market. Positive alpha means your strategy outperforms the benchmark.

The maximum decline from a peak before a new peak is achieved. Measures the worst-case loss your capital experiences.

The measure of risk-adjusted return. Calculated as S = (Rp - Rf) / σp. Above 1.0 is acceptable; above 2.0 is excellent.

A deceptive indicator behavior where past signals change. Algonney uses "Closed Candle" logic to ensure signals are permanent.

Real-time simulation using live price feeds but "virtual" capital. The final step before going Live.

The difference between expected trade price and actual execution price. Must be modeled in backtests.

Exchange trading fee (maker/taker). Typically 0.02–0.1% per trade. Ignoring fees makes backtests dangerously inaccurate.

A completed candlestick where the price will not change. Strategies evaluate on closed candles.

Average True Range — a volatility indicator. Used for dynamic stop-losses that adjust to market noise.

A stop-loss that moves with the price to lock in profits while guaranteeing a minimum profit floor.

Borrowed capital that amplifies both gains and losses. Must be managed with strict risk controls.

A mandatory pause after a trade closes. Prevents emotional "revenge trading" or chain-failures.

Total gross profit divided by total gross loss. Above 1.5 is good; above 2.0 is strong.

The candle interval used for analysis (e.g., 5m, 1H, 1D). Shorter timeframes show more noise.

Using more than one timeframe in a strategy (e.g., trend on 4H, entry on 15m) for confirmation.