In the fast-paced world of algorithmic trading, resilience is the difference between long-term success and sudden failure. Markets are inherently volatile, and a strategy that performs well in a stable environment can quickly crumble during periods of high stress.
The Strategy Applied
For this specific implementation, we focused on a multi-layered risk management framework combined with dynamic slippage compensation.
Applied Strategy Components:
- Dynamic Volatility Scaling: Size positions based on current market ATR to normalize risk across different regimes.
- Adaptive Execution Logic: Automated switching between Limit and Market orders based on LOB (Limit Order Book) depth.
- Stress-Tested Circuit Breakers: Hard-coded liquidation triggers based on portfolio-wide drawdowns.
- Slippage Modeling: Constant estimation of expected vs. actual execution price to adjust entry/exit aggressive behavior.
By integrating these components, the system maintains operational integrity even when market liquidity thins or price action becomes erratic.
Note: This is a real world project we cant add disclose real image and whole project.