Fully automated trading system for an Asset Management Company
About The Project
An end-to-end automated trading system that enters, adds, and exits positions based on multiple low-risk trading strategies.
The system makes use of pricing data, technical indicators, fundamental analysis, and market sentiment to decide next actions. The trades are managed in isolation as well as at a portfolio level. External investors can contribute funds and get exposure to proportional returns. Instruments traded are spot and perpetual futures of various cryptocurrencies
System Architecture
System Architecture diagram
Key Challenges
100% UPTIME REQUIREMENT
Since the system is autonomous, it is important to have a lot resilience and alerting system if external dependencies are having an outage.
ZERO MARGIN FOR ERROR
As we're dealing with Millions of dollars of someone else's money, even a single calculation typo is undesired.
RISK MANAGEMENT
Cryptocurrencies are very volatile. Projects get rugged, exchanges get hacked or shut down, funds get stolen, jurisdictional policies change overnight. It is crucial to not be a victim of any of this to ensure consistent returns.
PROFITABILITY IN CHANGING MARKETS
Market dynamics change very fast, so what used to be profitable before might not be today, so the strategy needs to continuously evolve.
REGULATORY COMPLIANCE
Like all the financial systems there are certain compliances to be followed to get operational licenses like FINMA.
RELIABLE BACKTESTING
The real world operates tick-by-tick (100s of price changes every minute), however most historical data is available in 1 minute granularity or higher. The trading system and the backtesting system need to be designed differently (one needs to be resilient and reactive, other needs to be very fast) but also ensure that their results are same.
Our Solution
CORE COMPONENT
A multi-tenant core trading engine with parameterized inputs that supports several exchanges and custodians.
USER INTERFACE
A secure, multi-user and high-fidelity interface to inspect the current trades, history, fund performance, and for admin users to change the strategy parameters.
SYSTEM MONITORING
An independent third-party analyzer service that monitors system health, fund exposure, trading system correctness by ensuring several conditions and invariants are met every minute. In case of failure, alerts are raised and proactive measures are taken automatically.
BACKTESTING
A fast performant backtesting engine that can simulate millions of epochs and return reliable results that also align with the live trading system performance.
SUPPORT
There were lot of auxiliary services for asset whitelisting, technical indicators, funds management, system monitoring and so on.
The Result
100% AUTONOMOUS
Fully automated trading system that consistently delivers great returns and manages the fund
SYSTEM RELIABILITY
High uptime with robust errors and failure handling system with automatic recovery mechanisms
FRAMEWORK EVOLUTION
Supporting framework to continuously test and evolve the trading strategies
RISK MANAGEMENT
Zero critical incidents with comprehensive monitoring and proactive alerting
Similar Projects
- Multi-broker execution & order management GUI for a trading firm (OMS/EMS)
- Risk engine with automated safeguards and drawdown controls for an HNI's portfolio
- Backtesting & strategy research infrastructure with live-parity validation
- GUI based Trading & Strategy Management Platform
Need a similar solution?
Talk with our team about your project goals and timeline.