Rule-based trading and alerts

Work in Progress - Target version V0.38.0

The implementation of alerts and rule-based trading is not yet complete. This documentation describes the planned and partially implemented functionality.

GT supports rule-based trading and a comprehensive alert system. This functionality is organized into two layers: the strategic core allocation for long-term portfolio rebalancing and the tactical trading layer for speculative strategies with alerts.

Hierarchical Structure

The algo system in GT is built hierarchically. At the top sits the Portfolio based strategy, usually linked to a watchlist. Below it are the asset classes or custom categories with their percentage weightings, and at the lowest level the individual securities. Strategies can be assigned to each of these levels.

graph TD
    A["Portfolio based strategy"] --> B["Asset Class 1 (e.g. Equities 60%)"]
    A --> C["Asset Class 2 (e.g. Bonds 40%)"]
    B --> D["Security A"]
    B --> E["Security B"]
    C --> F["Security C"]
    D --> G["Strategy 1"]
    D --> H["Strategy 2"]
    E --> I["Strategy 3"]

Two Operating Layers

GT distinguishes between two operating layers for rule-based trading.

The core allocation defines the long-term distribution of the portfolio across different asset classes. Through periodic rebalancing, deviations from target weightings are detected and action recommendations are generated. This layer is suitable for a strategic, passive investment approach.

The tactical trading layer enables assigning speculative strategies to individual securities. This encompasses simple price alerts, technical indicators and complex trading strategies such as dip-buying with profit and loss management.

Two Execution Modes

Strategies in GT can operate in two modes. In alarm mode, the defined strategies are evaluated against current market data. When the configured conditions are met, the system generates alert messages that inform the user via the internal messaging system. The user then independently decides on execution.

Simulation mode

In simulation mode you open a simulation environment: a separated copy of your portfolios and accounts as of a date in the past. How you create such an environment is described under Rule based trading. The Historical replay evaluates your strategies in it against past price data and books the resulting orders inside the simulation. Evaluating future, simulated price paths follows in a later version.

In GT you can reach the rule-based trading area via the navigation panel on the left side. Click on Rule-based Trading to open the tree view of your portfolio strategies. An overview of all alerts of your tenant is found on the client in the tab Alert.