In this chapter, you learned about the different types of risks and risk factors. Then, we went through the sources of risk and learned about quantifying the risks. Moving ahead, we also learned about how to measure and manage the risks (market risk, operational risk, and software implementation bugs) of algorithmic strategies. We incorporated a full production-ready risk management system into our previously built trading strategy, thus making them safe for deployment to live trading markets. Finally, we discussed and built a practical risk scaling system that starts with very low-risk exposure and dynamically manages the risk exposure over time as the strategy performance evolves.

In the next chapter, we will look at how the algorithm's trading interacts with the different factors in the trading arena. You will learn how to build a trading bot from scratch. Using the algorithm that we will build in the prior sections, you will know how to implement it, where to connect it, and how to handle it.