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Automation isn't autopilot · what to monitor

Automated execution keeps emotion out, but it doesn't remove the need for people. Four kinds of signals worth monitoring continuously, and what to do first when something breaks.

By Ruleap Star Team · Published

The biggest benefit of automated trading is that decisions follow rules consistently, free of in-the-moment emotion. But “automated” doesn't mean “unattended.” Systems run into data outages, venue issues and software bugs — all of which need to be caught in real time.

Four kinds of signals worth monitoring

  • Data health: is data arriving on time, with no gaps or abnormal jumps?
  • Module status: are analysis, signal, risk and execution all working?
  • Venue connectivity: are connections, order acknowledgements and fills consistent?
  • Risk events: which signals were blocked, why, and is the frequency unusual?

Fewer, better alerts

Too many alerts and people start ignoring them; too few and problems linger. A better approach is to tier alerts: act now, check today, or log only.

What to do when something breaks

  1. Contain: pause new signals so the problem doesn't grow.
  2. Confirm: check that current positions and orders match expectations.
  3. Fix: find the cause, correct it, verify, then resume.
  4. Review: record the incident and the response, and improve the process.

Monitoring doesn't replace rules — it makes sure the rules are actually being followed. This article explains a method and is not investment advice.

Further reading

Automation isn't autopilot · what to monitor|Ruleap Star