algorithmic trading / trading strategies / trading rules
What is a Trading Strategy? Indicators + Conditions + Actions
Course walkthrough
Algorithmic Trading Fundamentals
All lessons in this series
- 1What is Algorithmic Trading? A Beginner's Guide to Automated Strategies
- 2What is a Trading Indicator? The Building Blocks of Algorithmic Trading
- 3Technical Analysis Indicators Explained: Mean Reversion vs Momentum
- 4What Are Fundamental Indicators? Understanding a Company's Financial Health
- 5Alternative Data Sources for Trading: Satellite Imagery, Sentiment Analysis & More
- 6From Indicators to Conditions: Building Your Trading Rules
- 7What is a Trading Condition? Turning Indicators into True/False Logic
- 8What Are Trading Actions? The Final Building Block of Algo Trading
- 9What is a Trading Strategy? Indicators + Conditions + Actions
- 10How to Know if Your Trading Strategy is Actually Good?
- 11What is Backtesting? How to Test Your Trading Strategy
- 12What is Trading Strategy Optimization? (And How to Avoid Overfitting)
- 13Recap: From Building Blocks to Deployment
- 14How to Deploy a Trading Strategy: Paper Trading to Live Trading
- 15How to Backtest a Trading Strategy on NexusTrade (Beginner Guide)
This is the most important question of the module: What is a trading strategy?
A trading strategy is simply a set of rules for when you buy and sell stocks.
Here's how the pieces fit together: → Indicators measure data (price, revenue, sentiment, etc.) → Conditions compare indicators to create true/false logic → Actions execute when conditions are met
Example: Buy Apple if its price drops below last month's price. Sell NVIDIA if its PE ratio exceeds the S&P 500 average.
That's it. A trading strategy is a set of rules you define to execute autonomous actions in the market.
Watch lessons, complete hands-on activities, pass quizzes—and by the end, you'll have a real strategy deployed to the market.
Transcript
0:00Putting everything together, I'm gonna answer the most important question of this module. What is a trading strategy?
0:10A trading strategy is a set of rules for when you buy and sell stocks. They're composed of indicators.
0:19And the indicators create conditions, such as Apple stock price now is less than what it was last month, or Apple's revenue now is greater than what it was last year.
0:33These conditions allow us to execute actions.
0:37You might wanna buy Apple stock if it's a lot lower than what it used to be, or you might wanna sell your NVIDIA stock because its PE ratio is greater than the average PE ratio of the S&P 500.
0:52That's what a trading strategy is at its core. It is simply a set of rules that you define, a set of rules that you create to execute autonomous actions in the stock market.
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