Last week was one of those weeks that every serious algorithmic trader inevitably faces—not because the strategy failed, but because execution exposed weak links in the process.
I believe it’s important to share not only success stories, but also the mistakes, learnings, and corrections that shape long-term consistency. This blog is exactly that.
Issue 1: Combined Buy & Sell Legs — A Costly RMS Lesson
In one of my strategies, I was deploying buy and sell legs together for a stock. On paper, the logic was sound.
But in live execution, a critical issue surfaced:
- One leg got executed successfully
- The other leg got rejected due to RMS (Risk Management System) constraints
- The strategy moved into an error state
- As a result:
- Stop-losses were not carried
- Targets were not placed
- The open position became unmanaged
📉 Outcome:
A loss of nearly ₹20,000 in a single stock—not due to strategy logic, but due to execution dependency.
✅ The Fix Implemented
I immediately redesigned the execution logic:
- Buy legs and sell legs are now deployed separately
- Each leg is independently monitored
- Even if RMS rejects one side, the other leg remains protected
- Stop-loss and target placement is now non-negotiable
This change has eliminated single-point execution failure.
Issue 2: Human Error — Deploying 4 Stocks Instead of 8
On another trading day, the strategy performed exceptionally well.
However, due to an execution oversight:
- I deployed the strategy on only 4 stocks instead of the usual 8
- The market rewarded the setup perfectly
📈 Missed Opportunity:
Approximately ₹30,000 in unrealized profit, purely because of incomplete deployment.
✅ The Fix Implemented
To prevent this from ever repeating:
- I now religiously cross-check the number of stocks deployed every single day
- A fixed pre-market and post-deployment checklist is followed
- No strategy is considered “live” unless all intended stocks are confirmed
Process discipline is now as important as strategy logic.
What These Experiences Reinforced
These incidents didn’t weaken the system—they strengthened it.
They reinforced three core truths of professional algo trading:
- Execution matters as much as strategy
- Small process gaps can cause large financial impact
- Immediate correction is the hallmark of a serious trader
Instead of ignoring these mistakes, I embraced them, fixed them, and upgraded the system.
Looking Ahead: Focused, Corrected, and Ready
With:
- Separated buy/sell leg execution
- RMS-safe logic
- Strict deployment verification
- Daily discipline in execution checks
I step into the coming week with confidence, clarity, and caution—the right combination for sustainable returns.
Markets will do what they always do.
What matters is that my systems are now better prepared.
📊 Looking ahead to next week for strong, controlled returns.
Let’s see what the market brings—this time with sharper execution and stronger safeguards.
Final Thought
Losses teach.
Missed profits remind.
Corrections build consistency.
This is not just trading.
This is evolution.
— Madhu Babu
When Execution Teaches Hard Lessons: A Trader’s Honest Reflection and a Stronger Comeback
Last week was one of those weeks that every serious algorithmic trader inevitably faces—not because the strategy failed, but because execution exposed weak links in the process.
I believe it’s important to share not only success stories, but also the mistakes, learnings, and corrections that shape long-term consistency. This blog is exactly that.
Issue 1: Combined Buy & Sell Legs — A Costly RMS Lesson
In one of my strategies, I was deploying buy and sell legs together for a stock. On paper, the logic was sound.
But in live execution, a critical issue surfaced:
- One leg got executed successfully
- The other leg got rejected due to RMS (Risk Management System) constraints
- The strategy moved into an error state
- As a result:
- Stop-losses were not carried
- Targets were not placed
- The open position became unmanaged
📉 Outcome:
A loss of nearly ₹20,000 in a single stock—not due to strategy logic, but due to execution dependency.
✅ The Fix Implemented
I immediately redesigned the execution logic:
- Buy legs and sell legs are now deployed separately
- Each leg is independently monitored
- Even if RMS rejects one side, the other leg remains protected
- Stop-loss and target placement is now non-negotiable
This change has eliminated single-point execution failure.
Issue 2: Human Error — Deploying 4 Stocks Instead of 8
On another trading day, the strategy performed exceptionally well.
However, due to an execution oversight:
- I deployed the strategy on only 4 stocks instead of the usual 8
- The market rewarded the setup perfectly
📈 Missed Opportunity:
Approximately ₹30,000 in unrealized profit, purely because of incomplete deployment.
✅ The Fix Implemented
To prevent this from ever repeating:
- I now religiously cross-check the number of stocks deployed every single day
- A fixed pre-market and post-deployment checklist is followed
- No strategy is considered “live” unless all intended stocks are confirmed
Process discipline is now as important as strategy logic.
What These Experiences Reinforced
These incidents didn’t weaken the system—they strengthened it.
They reinforced three core truths of professional algo trading:
- Execution matters as much as strategy
- Small process gaps can cause large financial impact
- Immediate correction is the hallmark of a serious trader
Instead of ignoring these mistakes, I embraced them, fixed them, and upgraded the system.
Looking Ahead: Focused, Corrected, and Ready
With:
- Separated buy/sell leg execution
- RMS-safe logic
- Strict deployment verification
- Daily discipline in execution checks
I step into the coming week with confidence, clarity, and caution—the right combination for sustainable returns.
Markets will do what they always do.
What matters is that my systems are now better prepared.
📊 Looking ahead to next week for strong, controlled returns.
Let’s see what the market brings—this time with sharper execution and stronger safeguards.
Final Thought
Losses teach.
Missed profits remind.
Corrections build consistency.
This is not just trading.
This is evolution.
— Madhu Babu