ALGORITHMIC TRADING AND MARKET ANALYSIS
DOI:
https://doi.org/10.29121/shodhai.v2.i1.2025.56Keywords:
Algorithmic Trading, Market Analytics, Technical Analysis, Risk Management, BacktestingAbstract
This conceptual Summer Internship Project (SIP) provides a comprehensive, non-programming-centric study of Algorithmic Trading and Market Analytics. The research, conducted for a FinTech hardware manufacturer, SBSR Kannam Pvt Ltd, was a conceptual exploration into potentially integrating data-driven analytical tools into their Digital Banking Units. The study establishes that systematic trading is a multi-component system, not a single tool, consisting of a Data Handler, an Alpha Model (Market Analysis), a Risk Management Model, and an Execution Model. Key findings emphasize the probabilistic nature of market analysis, the context-dependency of strategies (Trend Following vs. Mean Reversion), and the paramount importance of risk management (Position Sizing, Stop Losses) and rigorous backtesting (avoiding biases like Overfitting) for long-term survival. The ultimate conclusion is that any integration of such analytics for a non-expert audience must adopt an 'Education First' approach to mitigate risks of misinterpretation and align with the host organization's mission of financial empowerment.
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Copyright (c) 2025 Nikitha .K, Dr. Bhojraj Shewale, Dr. Bhawana Sharma
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