QuantVPS Blog & Resources

Learn all about algo trading with QuantVPS!


How to Set Up Algorithmic Trading & Manage Risks Like a Pro

How to Set Up Algorithmic Trading & Manage Risks Like a Pro

Published November 18, 2024

How To

Emotions can be a trader’s worst enemy. Even the most experienced traders can succumb to fear and greed, making rash decisions that lead to losses. Algorithmic trading can help take emotions out of trading by implementing solid strategies based on mathematical calculations without any human intervention. Set up properly, algorithmic trading can run in the background, executing trades even while a trader sleeps. For traders engaged in high-frequency activities, implementing low latency trading solutions can provide faster order execution, ensuring they capitalize on fleeting market opportunities. For those looking for an edge in their trading, learning how to set up algorithmic trading can help you achieve your goals. This article will teach you how to successfully implement algorithmic trading strategies that maximize profits while managing and mitigating risks.

One great way to achieve success in setting up algorithmic trading strategies is to use a trading VPS. Once your algorithm is up and running, a trading VPS from QuantVPS can provide the optimal conditions. 

What is Algorithmic Trading?

trading on a phone - How to Set Up Algorithmic Trading

Algorithmic trading, or automated trading, uses computer programs to execute trades automatically based on predefined rules or conditions. A subset of quantitative, algorithmic trading uses predetermined if/then statements that tell the trading software when and how to place trades. 

The Dawn of Algorithmic Trading

Algorithmic trading’s roots date back to the early 1970s when the first algo traders began facilitating trading with computerized systems. This effort accelerated after the NASDAQ electronic stock exchange emerged in 1971, as it paved the way for more advanced trading algorithms to evolve. 

The 1980s and 1990s witnessed rapid technological advancements, such as high-frequency trading and electronic communications networks (ECNs), further enhancing trading software capabilities. 

Two Primary Types of Trading Algorithms

Experts group trading algorithms into two basic categories: rule-based and machine learning-based. Rule-based algorithms rely on specific criteria or technical indicators to make trading decisions. In contrast, machine learning-based algorithms use historical data to adapt their trading strategy over time.

Machine learning-based algorithms require a substantial understanding of:

  • Deep learning fundamentals
  • Statistics
  • Programming

For this reason, we’ll focus on rules-based algorithms, as rules-based stock trading bots are more accessible for beginner algo traders. 

The Benefits of Algorithmic Trading

Algorithmic trading isn’t just a flashy trend. It offers traders effective tools for limiting loss, managing risk, and reducing time to market. Its primary advantages include the following:

Lower Transaction Costs

Transaction costs accumulate with each trade, eating away at returns. Algorithmic trading aims for efficiency, making the fewest trades for the most profit. 

Reduced Human Error

Algorithmic trading limits errors by eliminating the need to place trades manually. This reduces the influence of trader’s emotions, facilitating precise and strategic thinking. 

Better Execution

Algorithmic trading strategies ensure quick and accurate order placement by concurrently checking numerous market conditions. Low latency limits the impact of stock price spikes, meaning orders fill at or near target levels. 

Backtesting

It’s easy to backtest algo trading strategies using historical or real-time price data. Backtesting provides valuable information that helps determine whether you have a viable stock trading strategy.

Popular Indicators Used in Algorithmic Trading

Algo traders rely on various indicators when evaluating trading patterns and market conditions. Trend analysis, chart patterns, and technical indicators help traders:

  • Identify opportunities
  • Provide a framework for executing trades

Here are some popular indicators in algorithmic trading:

Moving Averages (MAs)

A moving average calculates the average price of a security over a specified period, smoothing out price fluctuations and revealing the underlying trend. There are two common types: simple moving average (SMA) and exponential moving average (EMA). 

SMAs calculate a stock’s average price over a specific period, whereas EMAs emphasize a series’s most recent data points. Traders often use MAs in crossover strategies, where a short-term MA crossing a long-term MA generates buy or sell signals.

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI ranges from 0 to 100, with values above 70 considered overbought and below 30 considered oversold. Traders use RSI to identify potential reversals and confirm trends, making it popular in momentum trading strategies, determining underlying demand or supply, and evaluating market sentiment.

Bollinger Bands

Bollinger Bands contain a centerline (usually an SMA) and two outer bands that indicate volatility. When the bands expand, they signify high volatility; when they contract, they indicate low volatility. Traders often use Bollinger Bands in mean reversion strategies or to identify breakouts, buying long when the price breaks through the upper band and selling short when the price falls below the lower band. 

Stochastic Oscillator

The stochastic oscillator is a momentum indicator that compares a security’s closing price to its price range over a specified period. It ranges from 0 to 100, with measurements above 80 suggesting an asset is overbought and below 20 indicating it is oversold. Traders use the stochastic oscillator to detect potential trend reversals or to confirm trend direction.

Moving Average Convergence/Divergence (MACD)

MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. You can calculate the MACD by subtracting the 26-day EMA from the 12-day EMA, which results in the MACD line. Algo traders often use it with a signal line (9-day EMA of the MACD), which helps them generate buy and sell signals.

Average true range (ATR)

ATR is a volatility indicator that measures the degree of price movement or price range within a given time frame. It is calculated by taking the average of the valid range over a specified period. Traders often use ATR to set stop-loss orders and determine position size based on market volatility.

On-Balance Volume (OBV)

OBV is a momentum indicator that relates volume to price change. It accumulates volume on up days and subtracts volume on down days, providing a running total that helps traders identify buying and selling pressure in the market. By comparing price action and OBV, traders can evaluate market sentiment and identify bullish or bearish signals. 

Fibonacci Retracements

Fibonacci retracements are horizontal lines drawn on a price chart, indicating potential support and resistance levels based on the Fibonacci sequence. Each level in the sequence equates to a percentage, with levels at 23.6%, 38.2%, 61.8%, and 78.6%. Traders use these levels to identify potential reversals and target entries or exits.

Ichimoku Cloud

The Ichimoku Cloud is a comprehensive technical indicator that overviews a security’s trend, momentum, and support and resistance levels. Developed by Goichi Hosoda over 30 years and released in the late 1960s, it consists of five lines:

  • Tenkan-sen
  • Kijun-sen
  • Senkou Span A
  • Senkou Span B
  • Chikou Span

These lines include a 9-period average, 26-period average, 52-period average, and an average of the 9- and 26-period averages. Traders use the Ichimoku Cloud for trend identification, potential reversals, and breakout signals.

Parabolic SAR

The parabolic SAR is a trend-following indicator showing potential market reversal points. Depending on the trend direction, it appears as a series of dots placed above or below the price. Traders use the parabolic SAR to set trailing stop-loss orders and to determine trend reversals.

Related Reading

How to Set Up Algorithmic Trading

trading on a computer - How to Set Up Algorithmic Trading

Algorithmic trading requires sophisticated software and a solid understanding of market data, risk management, and technical indicators. Although you don’t need the most high-tech equipment, you need access to the following minimum requirements:

Low-Latency Infrastructure

Algorithmic trading relies on timely order placement and execution. To avoid glitches or dropped connectivity, you need a fast network connection—at least 100 megabits per second (Mbps). Ideally, you should use an Ethernet connection rather than Wi-Fi, as a hard-wired Ethernet cable connection offers greater stability and security.

Robust and Scalable Software Platform

Choose an algo trading platform that suits your short and long-term goals. Ideally, the platform should offer various tools and sufficient scalability so you can grow your strategy as your trading skills increase.

Reliable Market Data Feeds

Along with a stable connection, you need fast and reliable market data. In volatile markets, prices can change rapidly and significantly. You receive reliable, up-to-date data about stock price movements with real-time market feeds. Other benefits include:

  • Reduced costs
  • Accurate data analysis
  • Improved workflow
  • Faster response times

Coding Knowledge

Most algorithmic traders possess some knowledge of computer programming. Common languages used in Algo trading include Java and C++, but most traders prefer using Python because it’s:

  • Open-source
  • Relatively simple
  • Excels at data analysis

A Variety of Tools for Algorithm Development

Most automated trading systems let you import Pandas, NumPy, or other high-performance language libraries to build your algorithms and backtesting strategies. Others let you leverage charting software (like TradingView) or use no-code editors (like Composer) to develop your trading strategy. 

1. Understand the Basics

Before venturing into an algorithmic trading program, it’s crucial to have a solid understanding of financial markets. Familiarize yourself with key concepts such as:

  • Market orders
  • Limit orders
  • Trading psychology
  • Risk management
  • Various asset classes (e.g., stocks, futures, forex, cryptocurrencies)

Read books, take online courses, and follow financial news to build your foundational knowledge.

2. Choose Your Asset Class

Selecting the right asset class is a pivotal decision in your algo trading journey. Consider factors such as your interests, expertise, and risk tolerance. Each asset class has its own characteristics and market dynamics. For instance, stocks are often influenced by company-specific news, while forex markets are affected by geopolitical and economic events.

3. Select a Trading Platform

A reliable trading platform is your gateway to algo trading. Popular platforms like Zerodha Streak, uTrade Algos, and Upstox Algo Lab provide various tools and resources to facilitate algorithmic trading. Take the time to explore these platforms, understand their functionalities, and choose one that best aligns with your needs and preferences.

4. Learn Programming

Algorithmic trading typically involves some level of programming. The choice of programming language may depend on your chosen platform and your familiarity with coding. Python, for example, is widely used for algorithmic trading due to its simplicity and extensive libraries. If you’re not a programmer, consider enrolling in online courses or hiring a developer to assist with your algorithmic strategies.

5. Develop Your Trading Strategy

Your trading strategy forms the core of your algo trading activities. Define your strategy by outlining specific conditions for entering and exiting trades. Consider technical indicators, fundamental analysis, or sentiment analysis that your algorithm will use to make trading decisions. Specify your risk management parameters, including:

Technical Indicators 

Technical indicators are essential components of algorithmic trading strategies. Traders use these mathematical calculations to analyze historical price and volume data. Commonly employed indicators include:

  • Moving averages
  • Relative Strength Index (RSI)
  • Stochastic Oscillator
  • Bollinger Bands
  • MACD

For instance, a moving average crossover can signal buying or selling, while RSI indicates overbought or oversold conditions. These indicators provide quantitative insights into the following:

  • Asset performance
  • Guiding algorithmic trading decisions

Fundamental Analysis 

Fundamental analysis delves into trading assets’ economic, financial, and qualitative aspects. Algo traders in corporate earnings reports, economic indicators, and news sentiment analysis. Earnings reports can trigger buy or sell decisions based on surprises, while economic indicators can guide algorithms in response to data releases affecting market sentiment. 

Algorithms can also harness natural language processing to gauge news sentiment and adapt trading strategies accordingly. 

Sentiment Analysis 

Sentiment analysis focuses on evaluating market sentiment and investor emotions. Algorithms can incorporate social media monitoring to assess sentiment derived from keywords and discussions on platforms like:

  • Twitter
  • Reddit

Leveraging Sentiment and Option Flow Analysis

News sentiment analysis is another avenue where algorithms can assess the tone of news articles and base trading decisions on sentiment data. Option flow analysis can offer insights into market expectations by tracking unusual options activity. 

These sentiment analysis methods add an emotional dimension to trading decisions, enabling algorithms to react to market sentiment shifts. 

Risk Management Parameters 

Effective risk management is the backbone of algorithmic trading to safeguard capital. Hence, platforms like uTrade Algos provide comprehensive risk assessment analysis reports. Stop-loss orders act as safety nets by defining exit points for losing positions.

Take-profit levels help lock in profits at predefined points, ensuring gains aren’t eroded. Position sizing is critical, determining how much capital each trade allocates based on risk tolerance. Leveraging controls limits exposure to risky situations. 

Portfolio diversification ensures risk is spread across various assets, reducing the impact of a single losing trade on the overall portfolio. Careful calibration of these risk management parameters is vital for algorithmic trading success. 

6. Backtest Your Strategy

Before deploying your algorithm in live markets, backtest it using historical data. Backtesting involves testing your strategy using historical market data to assess its performance. Obtain historical price data for the assets you intend to trade. This data should cover a significant period, including:

  • Different market conditions
  • Varying levels of volatility

Utilize backtesting software or trading platforms that offer backtesting features. Many popular trading platforms come with built-in backtesting capabilities. Clearly define the parameters of your trading strategy, including:

  • Entry and exit conditions
  • Risk management rules
  • Any technical indicators or filters used
Backtesting Your Algorithm
  • Execute your trading algorithm using historical data like real trading without risking capital. The algorithm will generate signals and execute trades based on your set parameters.
  • Analyze the results of the backtest.
  • Assess factors such as the number of winning and losing trades, the total return on investment (ROI), the maximum drawdown (the largest peak-to-trough decline), and the risk-adjusted returns.

Slippage is the difference between the expected price of a trade and the actual executed price. In backtesting, it’s essential to simulate slippage as it occurs in real markets, as it can impact the profitability of your strategy. 

In real trading, costs such as spreads, commissions, and fees affect your returns. Include these costs in the backtest to understand better how your strategy will perform in live trading. Backtesting often reveals strengths and weaknesses in your strategy. Use this feedback to:

  • Refine your strategy
  • Adjust parameters
  • Consider alternative approaches

Backtest the revised strategy to assess improvements. Perform backtests on multiple timeframes to ensure your strategy is robust and effective in different market environments, including short-term and long-term scenarios. 

uTrade Algos is one platform that provides accurate historical data, thus helping traders perform effective backtests. Backtesting also helps validate risk management parameters, such as stop-loss and take-profit levels. Ensure these safeguards align with your overall risk tolerance and capital allocation strategy. 

7. Go Live 

When you’re ready for live trading, start with a small amount of capital. This initial phase is crucial as you begin executing real trades in the market. Ensure you closely monitor your algorithm’s performance and are prepared for potential adjustments. 

8. Continuous Monitoring and Optimisation 

An algorithmic trading program is an ongoing process that requires constant monitoring and optimization. Monitor your algorithm’s performance and adjust as market conditions change. Adapting and refining your strategy is essential to maintaining its effectiveness over time. 

9. Risk Management 

Implementing robust risk management techniques is paramount to safeguarding your capital. Set clear stop-loss orders, adhere to position sizing rules, and control leverage to mitigate potential losses. 

Algo trading can amplify gains, but it also carries risks that must be managed effectively. By following these detailed steps, you can embark on your algorithmic trading journey with a strong foundation and a better understanding of the intricacies involved in automated trading. 

Remember that patience, continuous learning, and disciplined execution are key to success in algorithmic trading.

Related Reading

10 Algorithmic Trading Risk Management Strategies

man on a laptop - How to Set Up Algorithmic Trading

1. Set Clear Risk Limits

Risk is always part of the game in algorithmic trading, but setting clear boundaries can keep things under control. The best way to manage risk is to create rules that the algorithm must follow, no exceptions. This is where the magic of algorithms comes into play. You can program it to stick to a set risk limit, say, 1% or 2% of your account balance per trade. That means no matter how attractive a trade looks, your algorithm will never risk more than what you’ve pre-decided. No emotional impulses, just cold, hard logic.

Let’s break it down:  

Percentage Risk Per Trade

This means you set a rule: “I’m only willing to lose X% of my total capital on any single trade.” By having this in place, you avoid the “all-in” mentality. Even if things go sideways, you only lose a small, manageable chunk of your portfolio.  

Stop-Loss Orders

Automated trading makes stop-loss orders even more critical. The algorithm automatically exits the position when a trade reaches a set loss level. It’s an easy way to cut losses short before they spiral out of control. If you’ve been tempted to hold on to a losing trade, hoping it turns around, this part of the algorithm will do the tough job of saying “no” for you.  

Common Pitfalls of Poor Risk Management

What happens when risk limits aren’t in place? A bad trade can wipe out your entire account; worse, emotional trading can lead to decisions based on fear or greed. Algorithms prevent this by sticking to the numbers you’ve programmed. You can breathe easily once you set those risk limits, knowing your algorithm won’t take any unplanned risks. 

2. Diversify Your Strategies

We all know that putting all your eggs in one basket isn’t a great idea, right? The same principle applies to algorithmic trading. Relying on just one strategy can expose you if the market shifts in a direction your algorithm isn’t designed to handle. Instead, think of your trading algorithms as a team. 

Each is good at something different—catching short-term trends or capitalizing on market corrections. Together, they form a diversified approach that smooths out your returns.  

3. Combining Different Strategies

Diversification isn’t just for long-term investments. In algorithmic trading, using different strategies that complement each other can reduce your overall risk. For instance, pairing a mean reversion strategy with a momentum-based algorithm helps balance out market conditions. 

When one strategy underperforms due to market volatility, the other might thrive, keeping your overall performance steady.  

  • Trend-Following Algorithms: These are your bread and butter for capturing big moves. But they can underperform in choppy, sideways markets. 
  • Mean-Reversion Algorithms: On the flip side, these do well when markets aren’t moving drastically but revert to an average price. 

By running multiple strategies simultaneously, you reduce the risk of having all your trades go sour simultaneously. In other words, if the market shifts, your algorithm doesn’t panic; it adapts.

4. Understand and Control Leverage

Leverage is a double-edged sword. When used wisely, it can amplify your gains significantly, but when used recklessly, it can destroy your capital faster than you can say “margin call.” Many beginner traders don’t fully understand how dangerous leverage can be. In algorithmic trading, leverage should be treated as an amplifier, not a shortcut to making big money. The goal is to:

  • Amplify smart
  • Calculated moves
  • Not make bigger bets on riskier trades

Leverage: A Double-Edged Sword

How Leverage Works

Simply put, leverage allows you to control more money than you have. For example, with 10:1 leverage, a $1,000 position controls $10,000 worth of an asset. Sounds great, right? It can be, but it can also backfire if the market moves against you. Imagine what happens when a 1% loss on $10,000 wipes out your $1,000 account. That’s the risky side of leverage. 

Low Leverage for Risk Management

Setting your leverage low is crucial, especially if you’re still testing the waters with your algorithm. For beginners or even experienced traders using new strategies, low leverage helps control your exposure and limit potential losses. 

Margin Call Protection

Most brokers will close your positions if your account falls below the required margin. While it sounds like a safety net, it can force you out of a position at the worst possible time. Your algorithm should be set to avoid reaching this point by keeping leverage within safe limits. 

By setting leverage limits within your algorithm, you ensure that your trades aren’t just bigger but also more innovative. 

5. Track Your Algorithm’s Performance Regularly

Once your algorithm is live, the work doesn’t stop. Monitoring its performance is crucial to ensure it’s working as expected. You might be tempted to let it run on autopilot, but even the best-designed algorithms can encounter problems in live trading. 

Performance Metrics

Keep an eye on key performance metrics like win rate, profit factor, and drawdown. These numbers give you a real-time snapshot of how your algorithm is doing. Is it winning more trades than it’s losing? Is it making more money than it’s risking? If these numbers start trending in the wrong direction, it’s a sign you need to investigate.

Set Alerts for Key Events

With modern trading platforms, you can set up dashboards or receive alerts when certain performance thresholds are hit. For example, you get notified if your algorithm’s win rate drops below a certain level. This keeps you in the loop without having to check performance every minute. 

Why Regular Audits Matter

Algorithms aren’t infallible. Market conditions change, sometimes rapidly. Without regular audits, you could miss warning signs that your strategy is no longer suitable for the current environment. A quarterly or monthly review of your algorithm’s performance can help you avoid potential issues.

6. Don’t Overreact to Short-Term Results

When monitoring your algorithm’s performance, there’s one big trap: overreacting to short-term results. It’s easy to get discouraged after a few losing trades, mainly if your strategy has performed well historically. But the market constantly evolves, and short-term losses are part of the game. The key is not to overreact. 

Stick to the Bigger Picture

If your algorithm is well-designed, it should have a built-in long-term edge. Losing streaks happen to everyone—even the best traders. The difference between a successful trader and one who fails is the ability to stay patient and let the algorithm do its thing. Think of it this way: if you have a strategy that wins 60% of the time, there will still be many losing trades. You’re on the right track as long as the wins outweigh the losses in the long run. 

The Dangers of Emotional Adjustments

When you let your emotions dictate your decisions, you might end up tweaking or abandoning a strategy too soon. This is especially dangerous in algorithmic trading because algorithms are built to work on logic, not emotion. Resist the urge to change parameters just because of a bad week or month; stick to your predefined rules and give the algorithm room to perform over the long haul.  

7. Regularly Update Your Algorithm to Keep Up with Market Changes

The market is constantly evolving, and while your algorithm might work perfectly in one environment, it may struggle when things change. You shouldn’t run your algorithm without updates like you wouldn’t drive a car on the same tires forever. Markets can shift due to new regulations, changes in global economies, or unforeseen events. The key here is adaptability. 

Why Updates Matter

When the market environment changes, a once profitable algorithm can become outdated. For example, if your algorithm is designed to trade in low-volatility markets and volatility suddenly spikes, the same strategy could lead to losses. That’s why it’s crucial to revisit your strategy periodically to ensure it suits current conditions. 

Backtesting New Market Data

To adapt to changes, run new backtests on updated market data. This lets you see how your algorithm would have performed under the latest conditions. If it’s underperforming, consider tweaking the parameters or introducing a new strategy to handle the shifts. 

Tuning Parameters

Sometimes, a minor tweak, like adjusting your risk tolerance or the period used for analyzing market trends, can make a big difference. Regularly testing and fine-tuning these settings helps ensure your algorithm stays sharp.  

8. Use Paper Trading to Test Adjustments

Before implementing any changes to a live algorithm, testing it in a risk-free environment is essential. This is where paper trading comes into play. Paper trading allows you to simulate trades without risking actual money. It’s like having a safety net; your adjustments get a trial run before you commit real capital. 

How Paper Trading Works

Paper trading involves running your algorithm in live market conditions, but instead of executing actual trades, the system simulates them. This lets you see how your new changes or strategies would perform without risking a single dollar. It’s the safest way to test if your updates work before letting them loose in the real market. 

Once you’ve run your adjusted algorithm through a paper trading session, you can evaluate its performance. Did it achieve the expected results? Were the losses manageable? Did the win rate improve? These are the key questions to answer before going live again. 

Why Rushing to Implement Changes Can Backfire

Skipping the paper trading phase can be a recipe for disaster. Even a small bug in the algorithm or a poorly thought-out adjustment can lead to significant losses without proper testing. Always take the time to test changes in a controlled environment before returning to live trading. 

9. Keep a Trading Journal to Learn and Improve

In algorithmic trading, a trading journal is like your personal feedback loop. Even though your algorithm does the actual trading, keeping a journal to record every trade, adjustment, and outcome helps you learn over time. This isn’t just about keeping track of wins and losses—it’s about understanding why certain trades succeeded or failed. 

What to Include in a Trading Journal

A good trading journal goes beyond simply listing trades. You want to document key elements that will help you improve: 

Trade Date and Time

When was the trade placed, and when was it closed? 

Entry and Exit Points

Where did you enter and exit the market? 

Market Conditions

Was there high or low volatility at the time? Were there any significant news events? 

Algorithm Settings

Were there any changes made to the algorithm before this trade? If so, what were they? 

By consistently reviewing your journal, you can spot trends or issues that might go unnoticed. Did your algorithm perform poorly during times of high volatility? Or did a specific asset class consistently outperform others? These insights are gold for fine-tuning your approach. 

10. Learn from Your Mistakes

In trading, mistakes aren’t just part of the game; they’re one of the best learning tools available. Every trader, whether human or algorithmic, will experience losses. The key to long-term success is understanding why they happened and avoiding repeating the same mistakes. 

Analyze Failures

Each losing trade is a mini case study waiting to be explored. Was the algorithm too aggressive in its position sizing? Did you over-leverage on a particular trade? You can find valuable lessons that improve your strategy by diving deep into what went wrong. 

Identify Common Patterns

If you notice that losses are concentrated during certain market conditions—such as high volatility or illiquid times—it may signal that your algorithm needs adjustments for those scenarios. 

Make Informed Adjustments

Once pinpointing the issue, you can make thoughtful, data-driven changes to your algorithm. This reduces the likelihood of similar mistakes happening again. 

Remember, it’s not about perfection. It’s about continuous improvement. Mistakes aren’t failures if you learn something from them. 

Staying Disciplined in Your Approach

Algorithmic trading is a long game, and just like any other form of investing, it requires discipline. The beauty of using an algorithm is that it removes emotion from the equation—there’s no fear, greed, or second-guessing. But the human element still matters. You must stay disciplined in sticking to your strategy, even when things don’t go your way in the short term. 

The Dangers of Deviating

One of the biggest pitfalls for traders, even those using algorithms, is the temptation to override the system. Maybe the market is crashing, and you’re tempted to intervene manually. Or perhaps your algorithm hit a rough patch, and you’re considering abandoning it entirely. Resist the urge! Algorithms are designed to follow logic and math, not emotions. Trust the system you’ve built, and let it do its job. 

If you’ve done your research, set realistic expectations, and designed a robust algorithm, you need to trust the process. Short-term losses can feel painful, but if your algorithm has a solid foundation, the long-term results will come.

Deploy a Trading VPS Today

QuantVPS delivers high-performance, cost-effective trading VPS solutions tailored for algo traders. Our platform offers ultra-low latency of 1 millisecond, ensuring lightning-fast execution for futures, crypto, equities, and forex trading.

High-Performance Trading Infrastructure

We support major trading platforms, including NinjaTrader, TradeStation, MetaTrader, Interactive Brokers, Sierra Chart, and Quant Tower. With 24/7 support and a 100% uptime guarantee, QuantVPS provides a reliable, speed-optimized environment for traders to run their automated strategies continuously and efficiently.

Get started and deploy your own trading VPS today! 

Related Reading