Automated Trading System

How the 15-variant quantitative stock ranking system works — from signal generation to trade execution.

How It Works

1

Signal Generation

Every market day at ~4 PM ET, the system downloads fresh prices, fundamentals, and risk data, then runs the tactical ranker to score all S&P 500 stocks.

2

Portfolio Construction

Each of the 15 variants applies its own risk overlays, position sizing rules, and filters to build a target portfolio from the ranked stocks.

3

Trade Execution

The system compares target vs. current holdings, generates buy/sell orders, and executes them in your connected Alpaca account before market open.

Setup Steps

  1. 1 Create a free Alpaca paper trading account
  2. 2 Connect Alpaca on the Connect Alpaca page
  3. 3 Select a strategy variant in Account Settings
  4. 4 Enable automated signals — trades execute automatically each market day
  5. 5 Monitor results on Paper Trading Dashboard

The 15 Variants

ID Name Account Type Description
Taxable (N-series) — 6 variants
N1 Growth Focused Taxable Aggressive growth tilt, higher concentration
N2 Growth with Protection Taxable Growth-oriented with downside protection overlays
N3 ML Risk-Adjusted Taxable Machine learning driven, risk-adjusted position sizing
N4 Conservative Risk-Adjusted Taxable Defensive posture, tighter stops, smaller positions
N5 Balanced Risk-Adjusted Taxable Balanced approach blending growth and risk management
N6 ML Growth Taxable ML-driven growth strategy with momentum signals
Taxable-in-IRA (Ni-series) — 3 variants
N1i Growth Focused (IRA) IRA N1 strategy adapted for IRA tax rules
N6i ML Growth (IRA) IRA N6 strategy adapted for IRA tax rules
N1ir Growth Reoptimized (IRA) IRA N1 re-optimized specifically for IRA constraints
IRA-Optimized (I-series) — 6 variants
I1 Conservative Risk-Adjusted (IRA) IRA Defensive IRA strategy, prioritizes capital preservation
I2 ML Risk-Adjusted (IRA) IRA ML-driven risk management for IRA accounts
I4 Smooth Growth (IRA) IRA Steady growth with low volatility target
I5 Growth Aggressive (IRA) IRA Aggressive growth for IRA, higher risk tolerance
I6 Balanced Risk-Adjusted (IRA) IRA Balanced blend of growth and risk control for IRA
I9 ML Momentum (IRA) IRA ML momentum signals optimized for IRA

What You Control vs. What the System Does

You Control

  • • Which variant to follow
  • • Whether to auto-execute or review trades manually
  • • Position size limits and max portfolio allocation
  • • When to start/stop the system
  • • IRA vs. taxable account selection

System Handles

  • • Daily price and fundamental data downloads
  • • Market regime detection (Bull/Bear/Neutral)
  • • Crash risk monitoring via ML models
  • • Stock ranking and portfolio construction
  • • Trade generation and execution timing
  • • Tax-aware position management (taxable accounts)

Important Notes

  • • Paper trading uses simulated money — no real capital at risk
  • • Past backtest performance does not guarantee future results
  • • The system requires daily price data — trades won't generate on market holidays
  • • Alpaca paper trading accounts reset periodically — reconnect if signals stop
  • • All strategies were optimized on 2015-2024 data with rolling-window validation

Coming Soon

  • • Live trading with real capital (Alpaca live API)
  • • Custom variant builder — choose your own parameters
  • • Multi-broker support (Schwab, Fidelity)
  • • Mobile notifications for trade execution

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