What is algorithmic trading?
Algorithmic trading applies explicit rules to market data and order decisions. Learning it responsibly means testing assumptions and separating a model from a promise of profit.
Beginner explanation
Rules must define inputs, timing, costs, outputs, and failure conditions before they can be evaluated.
Student exercise
Write a plain-language rule, identify every required input, and list what data would be unavailable at decision time.
Sources
Review SEC investor education alongside technical study.
Prerequisite math and programming
Use algebra, probability, descriptive statistics, and basic Python before adding model complexity. Learn one concept at a time and retain every assumption.
Common mistakes
Do not confuse a historical result with a forecast, hide data transformations, or omit costs, limitations, and a baseline comparison.
Simple student exercise
Write a small reproducible analysis with a documented public input, one calculation, one labeled chart, and three limits on what the result can establish.
Competition relevance
IQIC reviewers need to understand a team’s method, evidence, assumptions, and limitations. Start with the competition overview.