Podcast
Questions and Answers
What is the primary role of a software architect in a project?
What is the primary role of a software architect in a project?
- Writing the initial lines of code for the application.
- Managing the project timeline and resources.
- Testing and debugging the software application.
- Defining the high-level structure and framework of the software system. (correct)
Which design pattern promotes loose coupling between objects by defining a one-to-many dependency between objects, so that when one object changes state, all its dependents are notified and updated automatically?
Which design pattern promotes loose coupling between objects by defining a one-to-many dependency between objects, so that when one object changes state, all its dependents are notified and updated automatically?
- Observer (correct)
- Strategy
- Singleton
- Factory
In the context of software development, what does the SOLID principle refer to?
In the context of software development, what does the SOLID principle refer to?
- A set of five design principles intended to make software designs more understandable, flexible, and maintainable. (correct)
- A project management framework for agile development.
- A set of coding standards for writing clean code.
- A testing methodology for ensuring robust applications.
Which of the following is a key characteristic of microservices architecture?
Which of the following is a key characteristic of microservices architecture?
What is the primary goal of continuous integration (CI) in software development?
What is the primary goal of continuous integration (CI) in software development?
Which testing type focuses on individual units or components of the software to validate that each unit performs as designed?
Which testing type focuses on individual units or components of the software to validate that each unit performs as designed?
What is the significance of the 'DRY' principle in software development?
What is the significance of the 'DRY' principle in software development?
Which of the following is the primary benefit of using version control systems like Git?
Which of the following is the primary benefit of using version control systems like Git?
In object-oriented programming, what is the purpose of encapsulation?
In object-oriented programming, what is the purpose of encapsulation?
Which of the following best describes the role of a load balancer in a distributed system?
Which of the following best describes the role of a load balancer in a distributed system?
Which cloud computing model provides virtualized computing resources over the internet without the need to manage the underlying infrastructure?
Which cloud computing model provides virtualized computing resources over the internet without the need to manage the underlying infrastructure?
What does the term 'Technical Debt' refer to in software development?
What does the term 'Technical Debt' refer to in software development?
What is the purpose of using message queues in a software architecture?
What is the purpose of using message queues in a software architecture?
Which of the following is a key characteristic of an Agile software development methodology?
Which of the following is a key characteristic of an Agile software development methodology?
What is the primary benefit of using containerization technologies like Docker?
What is the primary benefit of using containerization technologies like Docker?
What is the main purpose of a 'code review' in software development?
What is the main purpose of a 'code review' in software development?
You are designing a system that requires high availability and fault tolerance. Which architectural pattern would be most suitable?
You are designing a system that requires high availability and fault tolerance. Which architectural pattern would be most suitable?
What is the primary purpose of using caching in a software application?
What is the primary purpose of using caching in a software application?
Which of the following best describes the concept of 'Infrastructure as Code' (IaC)?
Which of the following best describes the concept of 'Infrastructure as Code' (IaC)?
Which of the following is a common technique used to handle concurrency issues in multithreaded applications?
Which of the following is a common technique used to handle concurrency issues in multithreaded applications?
Flashcards
Quizgecko
Quizgecko
A platform to generate flashcards.
Study Notes
- Algorithmic trading uses computer programs to execute trades based on a defined rule set.
- Algorithmic trading removes emotional decision-making.
- It can execute trades at optimal times and prices.
- Institutional investors, hedge funds, and individual traders use algorithmic trading.
- It needs careful design, testing, and monitoring to ensure profitability and risk management.
Algorithmic Trading System Development
- Idea Generation & Research is the first step.
- Backtesting & Optimization follows idea generation.
- Next is Paper Trading.
- Followed by Live Trading.
- Monitoring & Adjustment is the final step.
Idea Generation
- Begins with a solid reason for the strategy.
- Strategies include: Arbitrage, Mean Reversion, Trend Following, and Market Making.
- Data needed include: Level 1, Level 2, news, and social media.
- Time Horizon is the period positions will be held.
- Universe dictates which instruments will be traded on what exchanges.
- Entry/Exit Criteria are how entry and exit points will be defined.
- Risk Management is how losses will be limited.
Backtesting
- Ensure trading and risk management rules can be fully automated.
- Use "clean" historical data to ensure data integrity.
- Simulate realistic order execution to account for slippage.
- Account for commissions, fees, and other costs.
- Statistical Analysis is needed to evaluate performance metrics.
Paper Trading
- The strategy is tested in a simulated trading environment.
- Real-time market data is used.
- Fine-tune strategy parameters and risk management rules.
- Track key performance indicators (KPIs).
- Become familiar with trading platform functionalities.
Live Trading
- Begin with small positions for Gradual Deployment.
- Monitor and adjust in real-time as needed.
- Essential to ensure robust infrastructure (servers, internet, connectivity).
- Adhere to regulatory requirements.
- Emotional Control: Stick to the rules, avoid emotional decisions.
Strategy Evaluation
- Maximum Drawdown: The largest peak-to-trough decline during a specific period.
- Win Rate: The percentage of profitable trades out of all trades.
- Profit Factor is calculated as Gross Profit / Gross Loss.
- Sharpe Ratio: (Portfolio Return - Risk-Free Rate) / Standard Deviation of Portfolio Return.
- Annual Return: The return on an investment over a one-year period.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
