Typically, a strategy is motivated by a theme or style of trading. 

The objective is to minimize either absolute or risk-adjusted costs relative to a benchmark

For strategies with mathematically defined objectives, an optimization is performed to determine how to best use the strategy to maximize a trader's or ptf manager's utility. 

A trade schedule (or trajectory) is planned for strategies with a target quantity of shares to execute. 

The order placement engine (= the microtrader) translates from a strategy's broad objectives to individual orders.

User-defined input parameters control the trade schedule and order placement strategy. 

Add a comment