Trading System for Stock Market

Software Requirements Specification (SRS) for Integrated Backtesting, Paper Trading, and Live Trading System

1. Introduction
1.1 Purpose
This Software Requirements Specification (SRS) document describes the requirements for an integrated system to support backtesting, paper trading, and live trading of stock market strategies. The system will be used to manage multiple trading strategies, broker accounts, and provide performance metrics and machine learning optimizations.

1.2 Scope
The system will support:
30-40 technical indicators
50-100 trading strategies, both indicator-based and quantity-based
40-50 KPIs
Backtesting, paper trading, and live trading
Integration with 5-10 broker APIs
4-5 ML Models for optimizations
Real-time screeners, watch-lists, news feeds, and alerts

1.3 Overview
This document provides an in-depth description of our system's functionality, data handling, architecture, performance requirements, security, and compliance measures.

2. Overall Description
2.1 Product Perspective
The system is a standalone software product designed to integrate with multiple broker APIs for trading execution. It will provide a unified interface for strategy management, backtesting, paper trading, and live trading.

2.2 Product Functions
Backtest strategies using historical data
Paper trade strategies in real-time market conditions
Execute live trades based on strategy signals
Provide performance metrics and visual reports
Integrate with machine learning models for strategy optimization
Real-time market data, news feeds, and alerts

2.3 User Characteristics
Current: 
In Future:
Traders: Individuals who will use the system to manage and execute trading strategies.
Administrators: Users who will configure the system, manage broker accounts, and oversee overall operations.

2.4 Constraints
Compliance with financial regulations
Integration limitations with broker APIs
Real-time data latency

2.5 Assumptions and Dependencies
Availability and reliability of broker APIs
Consistent historical and real-time data feed

3. Specific Requirements
3.1 Functional Requirements
3.1.1 Backtesting
Simulation Environment Setup: Simulate trading using historical data.
Strategy Integration and Execution: Integrate and execute trading strategies.
Performance Metrics and Reporting: Provide detailed performance reports.
Parameter Optimization: Optimize strategy parameters.

3.1.2 Paper Trading
Configure Paper Trading Accounts: Set up virtual accounts for paper trading.
Track Paper Trading Performance: Monitor and report performance.
Real-Time Data Integration: Use live market data.
Performance Analysis: Provide detailed performance reports.

3.1.3 Live Trading
Broker API Integrations: Connect with APIs of 5-10 brokers, as of now.
Real-Time Order Execution: Execute trades based on strategy or manual signals.
Risk Management Protocols: Monitor and control exposure.
Monitoring and Alert Systems: Track performance and market conditions in real-time.

3.1.4 Order Management System (OMS)
Order Lifecycle Management (Creation, Routing, Execution, post-trade processing)
Order Entry & Management, types, modifications, cancel, replace, etc
Order Routing and Execution Logic: Route orders across multiple brokers.
Multi-Broker Support: Manage trades across multiple broker accounts.
Order Types and Handling: Support market, limit, stop-loss orders.
Error Handling and Recovery: Implement robust error handling.
Real time data
Historical data integration
Customized views for monitoring orders, positions and market data

3.1.5 User Interface and Experience
Dashboard Design: Display account summaries, recent activities, and market overview, etc
User Interaction Flows: Manage strategies and trading activities.
Alert and Notification Systems: Real-time alerts for significant events.
User Documentation and Support: Provide comprehensive user support.

3.1.6 Machine Learning Integration
Model Development: Develop ML models for market predictions and optimizations.
Model Training and Validation: Train and validate models using historical data.
Real-Time Model Deployment: Deploy models for real-time training and trading.
Performance Monitoring: Continuously monitor and improve model performance.

3.2 External Interface Requirements
3.2.1 User Interfaces
Web-based interface for user interactions
Scope and scalability for mobile app??

3.2.2 Hardware Interfaces
No specific hardware interfaces required beyond standard computing devices.

3.2.3 Software Interfaces
Integration with broker APIs for historical and real time data, backtesting and live trading

3.2.4 Communications Interfaces
Secure internet connection for API communications
WebSocket connections for real-time data feeds

3.3 Nonfunctional Requirements
3.3.1 Performance Requirements
Speed and Latency: The system should process and execute trades with minimal latency.
Capacity: Support for up to 1000 concurrent users??

3.3.2 Safety Requirements
Data Integrity: Ensure accuracy and integrity of trading data.

3.3.3 Security Requirements
Authentication and Authorization: Implement OAuth 2.0 and RBAC.
Data Encryption: Use AES-256 for data encryption.
Audit Trails and Logging: Maintain comprehensive logs for all activities.

3.3.4 Software Quality Attributes
Reliability: The system should have 99.9% uptime.
Maintainability: Modular design for easy updates and maintenance.

3.4 System Features
Screeners and Watch-Lists: 30-40 Real-time market scanners and customizable watch-lists.
News and Alerts: Real-time news feed and custom alerts.
Machine Learning Insights: Predictions and optimization suggestions.
Settings and Configuration: Manage account settings, notifications, and security.

4. System Architecture and Design
4.1 Architectural Diagrams
Provide system architecture diagrams illustrating the high-level structure, including interactions between different components.

4.2 Modules and Components
Data Handling Module: Manages data collection, preprocessing, storage, and retrieval.
Backtesting Module: Executes trading strategies on historical data.
Paper Trading Module: Simulates trading in real-time market conditions.
Live Trading Module: Handles real-time order execution.
Multi-broker OMS Module: Manages order routing and execution.
ML Integration Module: Integrates machine learning models.
UI/UX Module: Manages user interface and experience.
Security Module: Handles authentication, authorization, and data encryption.
Notification Module: Manages alerts and notifications.
Reporting Module: Generates performance reports.

5. Data Handling
5.1 Data Sources
Historical and Real time Data: Integration/websocket connections with broker APIs.
5.2 Data Preprocessing and Cleaning
Implement ETL processes to clean and preprocess data for analysis and trading.
5.3 Data Storage and Retrieval
Use a combination of SQL and NoSQL databases to store historical and real-time data.
5.4 Data Security and Compliance
Implement AES-256 encryption and secure access controls to protect sensitive data.

6. Performance Requirements
6.1 Speed and Latency
Ensure real-time order execution with minimal latency.
Optimize data processing to handle high-frequency trading scenarios.

6.2 Capacity
Support up to 1000 concurrent users without performance degradation???

7. Security and Compliance
7.1 Data Encryption and Secure Storage
Use AES-256 for encrypting data in transit and at rest.

7.2 Authentication and Authorization
Implement OAuth 2.0 for secure authentication.
Use role-based access control (RBAC) for authorization.

7.3 Compliance with Relevant Regulations
Ensure compliance with financial regulations?????

7.4 Audit Trails and Logging
Maintain comprehensive logs of all activities for audit purposes.

8. Testing and Validation
8.1 Unit and Integration Testing
Perform thorough testing of individual components and their integration.

8.2 Simulation and Backtesting Validation
Validate the accuracy of backtesting and simulation results.

8.3 User Acceptance Testing (UAT)
Conduct UAT to ensure the system meets user requirements.

8.4 Ongoing Testing and Maintenance Plans
Establish plans for continuous testing and maintenance post-deployment.

9. Project Management and Communication
9.1 Timeline and Milestones
Provide a detailed timeline with key milestones for the project.

9.2 Communication Plan
Outline the communication plan between stakeholders.

9.3 Risk Management
Identify potential risks and mitigation strategies.

This SRS document provides a detailed and structured outline of our system's requirements, ensuring clarity and comprehensiveness for the development team.




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