Learn Algorithmic Trading
Learn Algorithmic Trading

Learn Algorithmic Trading

Signals are called by various names—signals, indicators, predictors, calculators, features, alpha, and so on—but they all have roughly the same meaning. (Location 701)

A trading signal is a well-defined piece of intelligence that is derived from incoming market data information, limit order books or trade information that allows a trading strategy to get a statistical edge (advantage) vis-à-vis other market participants and, thus, increased profitability. (Location 702)

Often, a lot of algorithmic trading systems combine a lot of different kinds of signals in order to gain a bigger edge than individual signals provide. The approach is to essentially combine different signals that have different predictive abilities/advantages under different market conditions. (Location 708)

the trend strategy uses speed, whereas the momentum strategy uses acceleration. (Location 974)