# Glossary Trading terms and platform-specific terminology. --- ## A ### ADX (Average Directional Index) Indicator measuring trend strength (0-100). Above 25 indicates a strong trend; below 20 suggests sideways movement. ### All Seeing Eye Platform feature that orchestrates AI analysis across multiple data sources to provide unified market intelligence. ### Alpha Returns above the benchmark. Positive alpha means outperformance; negative means underperformance. ### API Key Credential for connecting external services (brokers, data providers). Keep these secret. ### AST (Abstract Syntax Tree) Internal representation of your trading strategy after it's parsed from English or DSL. ### ATR (Average True Range) Measure of volatility based on price range. Higher ATR = more volatile. ### Auto-Restart Feature that automatically resumes interrupted trading strategies after server restarts. --- ## B ### Backtest Testing a strategy against historical data to see how it would have performed. ### Beta Measure of how much an asset moves relative to the market. Beta of 1.5 means 50% more volatile than the market. ### Black Swan Rare, unpredictable event with severe consequences. The platform monitors for early warning signs. ### Bollinger Bands Volatility indicator with upper/lower bands around a moving average. Price touching bands may signal overbought/oversold. ### Bracket Order Order that includes entry, stop-loss, and take-profit levels together. ### BYOK (Bring Your Own Key) Using your own Anthropic API key for AI features instead of platform credits. --- ## C ### Calmar Ratio Risk-adjusted return metric: annual return divided by maximum drawdown. Higher is better. ### Candlestick Chart element showing open, high, low, close prices for a period. Patterns formed by candlesticks can signal reversals. ### Circuit Breaker Safety mechanism that pauses or stops trading when certain conditions are met (consecutive losses, drawdown limits). ### Correlation Statistical measure of how two assets move together. Range: -1 (opposite) to +1 (identical). ### Correlation Haircut Platform feature that reduces position size when you hold correlated assets across multiple strategies. ### Critique AI-powered adversarial review of your trading strategy to identify potential issues. --- ## D ### Death Cross Bearish signal when the 50-day moving average crosses below the 200-day moving average. ### Divergence When price and an indicator move in opposite directions. Often signals a potential reversal. ### Doji Candlestick pattern where open and close are nearly equal. Signals indecision. ### Drawdown Decline from peak portfolio value. Maximum drawdown is the largest peak-to-trough decline. ### DSL (Domain Specific Language) The structured format used to define trading strategies on the platform. --- ## E ### EMA (Exponential Moving Average) Moving average that weights recent prices more heavily than older prices. ### Engulfing Pattern Candlestick pattern where the second candle completely engulfs the first. Bullish or bearish depending on direction. ### EOD Critic Daily AI review of active trading strategies that checks performance and may recommend changes. ### Equity Curve Graph showing portfolio value over time during a backtest or live trading. ### Execution Mode Your current trading mode: Mock (simulated), Paper (practice), or Live (real money). --- ## F ### Fair Value Gap (FVG) Price area where rapid movement created a gap in trading activity. Often acts as support/resistance. ### FOMC Federal Open Market Committee — the Fed body that sets interest rates. Meetings are market-moving events. ### Funding Rate In perpetual futures, the periodic payment between longs and shorts that keeps price anchored to spot. ### Futures Contracts to buy/sell an asset at a predetermined price on a future date. --- ## G ### Golden Cross Bullish signal when the 50-day moving average crosses above the 200-day moving average. ### Graduation Process of advancing from Paper to Live trading after meeting safety requirements. ### Guardrails Platform safety limits that prevent excessive risk (position size, drawdown, daily loss limits). ### GTC (Good 'Til Cancelled) Order that remains active until filled or manually cancelled. --- ## H ### Hammer Bullish reversal candlestick with small body and long lower wick. ### Hanging Man Bearish reversal candlestick that looks like a hammer but appears after an uptrend. ### Hedge Position taken to reduce risk in another position. ### Hot-Swap Updating a running strategy with new parameters without stopping it. --- ## I ### Idempotency Key Unique identifier ensuring an order is only executed once, even if the request is repeated. ### In-Sample (IS) Data used to train or optimize a strategy in walk-forward testing. --- ## J ### Jury AI system that reviews proposed strategy modifications using proposer, critic, and judge roles. --- ## K ### Kalshi CFTC-regulated US prediction market used for event probabilities. ### Kelly Criterion Formula for optimal position sizing based on win probability and payoff ratio. --- ## L ### Leverage Using borrowed money to increase position size. Amplifies both gains and losses. ### Limit Order Order to buy/sell at a specific price or better. ### Liquidation Forced closing of a leveraged position when losses approach the margin amount. ### Liquidity How easily an asset can be bought/sold without affecting price. High liquidity = tight spreads, easy execution. --- ## M ### MACD (Moving Average Convergence Divergence) Momentum indicator showing relationship between two moving averages. ### Market Cap Total value of a company's shares (price × shares outstanding). ### Market Order Order to buy/sell immediately at the current market price. ### Max Drawdown Largest peak-to-trough decline in portfolio value. Key risk metric. ### MFA (Multi-Factor Authentication) Security feature requiring a second verification method beyond password. ### Mock Trading Simulated trading with virtual money. Default mode for all users. ### Morning Star Bullish three-candle reversal pattern. --- ## N ### Notional Value Total value of a position (price × quantity). For leveraged positions, this exceeds the margin required. --- ## O ### OAuth Authentication protocol used to connect broker accounts (Pepperstone, Schwab). ### OBV (On-Balance Volume) Indicator that uses volume flow to predict price changes. ### OOS (Out-of-Sample) Data NOT used in training. Used to validate strategy generalization. ### Overfit Strategy that works well on historical data but fails on new data because it learned noise, not patterns. --- ## P ### PANIC Button Emergency stop that immediately halts all active trading strategies. ### Paper Trading Practice trading with simulated execution but real market prices. ### Pattern Hunter Platform feature that scans multiple symbols for chart patterns simultaneously. ### Perpetual Swap Futures contract with no expiration date, using funding rates to track spot price. ### Polymarket Decentralized prediction market for event probabilities. ### Position Sizing Determining how much capital to allocate to each trade. ### Profit Factor Gross profits divided by gross losses. Above 1.5 is generally good. ### PSR (Probabilistic Sharpe Ratio) Statistical measure of confidence that a strategy's Sharpe ratio is genuinely positive. --- ## Q ### Quick Trade One-click trading from Stock Hunter recommendations with pre-filled parameters. --- ## R ### Rebalancing Adjusting portfolio positions to maintain target allocations. ### Regime Market condition (bull, bear, sideways, crisis, recovery) that affects strategy behavior. ### Resume Request Prompt to restart a strategy that was interrupted (e.g., by server restart). ### RSI (Relative Strength Index) Momentum indicator (0-100). Below 30 often considered oversold; above 70 overbought. ### Risk-Free Rate Return on a "riskless" investment (typically T-bills). Used in Sharpe ratio calculation. --- ## S ### Sharpe Ratio Risk-adjusted return: (return - risk-free rate) / standard deviation. Higher is better. ### Short Selling Selling an asset you don't own to profit from price decline. ### Slippage Difference between expected price and actual execution price. ### SMA (Simple Moving Average) Average of closing prices over a period. 50 SMA and 200 SMA are commonly watched. ### Sortino Ratio Like Sharpe ratio but only penalizes downside volatility. ### Stop Loss Order to exit a position when price moves against you by a set amount. ### Stop Order Order that becomes active when price reaches a trigger level. ### Stress Test Testing a strategy against historical crisis periods. ### Support/Resistance Price levels where buying (support) or selling (resistance) pressure is expected. --- ## T ### Take Profit Order to exit a position when profit target is reached. ### Trailing Stop Stop loss that moves with favorable price movement, locking in gains. ### Trend Following Strategy that attempts to profit from sustained price movements in one direction. --- ## U ### Universe Set of symbols a strategy considers for trading. --- ## V ### VIX Volatility index measuring expected S&P 500 volatility. High VIX = fear; low VIX = complacency. ### Volume Number of shares/contracts traded in a period. Confirms price movements. ### VPIN (Volume-Synchronized Probability of Informed Trading) Measure of trading flow toxicity. --- ## W ### Walk-Forward Testing method that trains on one period and validates on the next, repeatedly. ### Warming Pattern Pattern that is forming but not yet complete. Platform can alert you when patterns "warm up." ### Win Rate Percentage of trades that are profitable. --- ## Y ### Yield Curve Graph of bond yields across maturities. Inverted curve (short > long) often predicts recession. --- ## Z ### Z-Score Standard deviations from the mean. Z-score of 2 means value is 2 standard deviations above average. --- ## Platform-Specific Terms ### Agencio Credits Platform currency for AI-powered features. ### AI Trader Platform system for creating and running AI-powered trading strategies. ### All Seeing Eye Central AI orchestration system providing unified market intelligence. ### Graduation Tracker System monitoring your progress toward live trading qualification. ### Pattern Intelligence Unified system combining Pattern Hunter and Pattern Warming Radar. ### Stock Hunter AI-powered stock research and recommendation system. ### Trading Wizard Guided 7-step process for creating trading strategies. --- ## Broker-Specific Terms ### Alpaca Commission-free US stock/ETF broker with API access. ### Binance Cryptocurrency exchange supporting spot and perpetual futures. ### Interactive Brokers (IBKR) Full-service broker supporting stocks, options, futures, forex globally. ### Pepperstone Forex and CFD broker using cTrader platform. ### Charles Schwab US broker supporting stocks, ETFs, and options. --- *Terms and definitions are for educational purposes. Always verify current meanings in context.*