Trend-Following Backtester · Guide · Concepts 한국어
Concepts
Automated, algorithmic, systematic, program trading — what the terms actually mean
Four words used interchangeably, pointing at different layers. Three questions separate them: is there a rule, does a human intervene, and who places the order.
The terms
| Term | Core meaning | Human places the order? |
|---|---|---|
| Systematic trading | A fixed rule exists. Execution may still be manual | Maybe |
| Algorithmic trading | The rule is implemented as code | Usually no |
| Automated trading | Signal to order, untouched by hand | No |
| Program trading | In several regulated markets this is a defined term for basket and index-arbitrage trades, not a synonym for “a program trades for me” | No |
Roughly: systematic ⊃ algorithmic ⊃ automated. A rule makes it systematic; code makes it algorithmic; hands-off order placement makes it automated.
What automation actually solves
Not speed. A daily-bar strategy needs one decision per day. What it solves is you.
- Seeing the signal and not acting. Re-entering after a losing streak is much harder than it sounds.
- Watching when there is nothing to watch. The rule fires once a day; people watch the chart all day.
- Not being there. Signals land while you sleep or sit in a meeting. Crypto never closes.
The minimum structure
- Prices — pull daily bars from the exchange.
- Decision — compute the signal from confirmed bars only.
- Orders — trade the difference between target and current holdings.
- A kill switch — stop by itself when losses exceed a limit.
Do not hand your API keys to anyone
Services that ask you to upload exchange API keys are asking for the ability to place orders in your account. Even if the company is honest, its server is now a target.
Keys belong only on a machine you control. And when you create them at the exchange, never enable withdrawal permission — trading permission alone is enough to run a strategy.