Design optimal reward functions for algo trading in India. Balance profits, risks compliance with strategies like Sharpe ratio, drawdowns backtesting.
In algo trading, especially in India’s fast-moving and unpredictable markets, it’s very important to design a good reward function. This function helps create trading strategies that can make profits while keeping risks under control.
A reward function in Reinforcement Learning (RL) is the key tool that guides an investor or trading system to decide whether to buy, hold, or sell.

Algorithmic trading (algo trading) has transformed the operation of financial markets all over the world and the impact of it is also evident in India. Read more at Bigul.
Algorithmic trading has changed how financial markets work worldwide, including in India. As more people use it, many wonder if algo trading is legal in India. There are concerns about risks like market manipulation, unfair trading, and whether rules are strong enough.
This article will explore whether algorithmic trading is legal in India. But first, let's explain what algorithmic trading actually is.

Algorithmic trading uses computer software to automatically buy and sell stocks based on set rules. These programs analyze market data and spot opportunities faster than humans can. Pre-programmed systems can make decisions in tiny fractions of a second, finding and using small price differences in the market.
These automated systems make incredibly quick decisions that take advantage of price imbalances. In high-frequency trading, these decisions happen in milliseconds, letting traders profit from tiny price changes across different markets. Many programmers use Python programming language

Algorithmic trading commonly referred to as “Algo Trading”, or “rule based trading” is a process for executing orders that considers variables including time, price, and volume while using automatic pre-programmed trading instructions.

Algorithmic trading, also known as automated trading, black-box trading, or simply algo trading, is the process of employing computers that are programmed to execute trades in a way that is quicker and more frequent than a human trader can ever be.

Read more at - https://bigul.co/blog/algo-trading/algorithmic-trading-the-fastest-way-to-trade

The financial markets operated on traditional, manual methods, before the advent of technology. At that time, such manual methods needed intervention of human beings in almost every aspect of the trading process. At that time, execution of trades used to be done in physical locations like the trading floors of stock exchanges, where interaction of brokers was face-to-face. In that situation, orders were shouted by brokers, who used to, wave hand signals and used physical notebooks to record transactions.
Read more at Bigul - https://bigul.co/blog/algo-trading/is-algorithmic-trading-safe-for-