Algorithmic Trading System
Genesis
This was built out of curiosity, not necessity. I wanted to understand how algorithmic trading systems work in practice—how they learn, adapt, and improve. It runs on paper trading only (no real capital at risk), but the architecture is built to be genuinely self-improving. Each month it gets stronger, with minimal manual intervention.
How It Works
Ensemble voting. Rather than betting on a single signal, the system runs multiple independent strategies in parallel. A trade only executes when multiple signals agree—consensus reduces false positives.
Regime detection. Markets behave differently in trending, ranging, and volatile regimes. The system detects current regime and adjusts strategy weights accordingly. A trend-following strategy works in trending markets but fails in chop; the system knows when to dial it down.
Monthly feedback loop. At month-end, the system generates a detailed performance report using QuantStats. I review what worked, what didn't, and adjust parameters. The system is built to improve incrementally without manual rewriting.
Operational simplicity. Docker Compose manages the entire stack—Freqtrade bot, PostgreSQL database, Telegram notifications. One docker-compose up and it runs. Infrastructure is disposable.
Technical Approach
The system is built on Freqtrade, an open-source trading framework. Python strategies layer multiple technical indicators (moving averages, RSI, Bollinger Bands, ADX) and vote on entry/exit. Regime detection uses market volatility and trend strength to weight votes dynamically. PostgreSQL stores all trade history and performance metrics. Telegram integration sends trade alerts in real time.
What I've Learned
- Overfitting is the enemy—strategies that look perfect on historical data often fail live
- Ensemble voting outperforms single strategies, even if individual voters are imperfect
- Regime detection is crucial; same strategy can't work equally well in all market conditions
- Feedback loops matter; small iterative improvements compound over time
- Paper trading teaches discipline; real money would change psychology entirely
Stack
Live Monitor
Below is the trading monitor showing live strategy performance, signal consensus, and recent trades. The system updates in real time during market hours.