Action Algo

Glossary

Definitions used across the ActionAlgo product and marketing.

A

AI-assisted strategy creation

Using AI to propose strategy structures and wording that you can review, edit and own.

Algorithmic trading

Trading driven by predefined rules rather than discretionary decisions. In ActionAlgo, algorithms are visible strategies you can inspect and change.

Allocation

How capital is split across assets or strategy legs (for example equal-weight versus risk-weighted).

B

Backtest

Running a strategy against historical market data to estimate how it might have performed.

Benchmark

A reference index or strategy used to compare performance (for example a broad equity ETF).

D

Discover

Browsing a library of ready-made strategies. Users can search, filter and compare strategies before watching, copying or customising them.

Drawdown

The decline from a peak to a trough in portfolio value. A measure of downside risk during a period.

E

ETF

Exchange-traded fund — a fund that trades on an exchange and typically tracks an index, sector or theme. A common building block for retail strategies.

Explainable AI

AI whose outputs can be inspected and understood. In ActionAlgo, generated strategies remain visible as editable rules rather than opaque recommendations.

G

GDPR

General Data Protection Regulation — the EU framework that governs how personal data may be collected, stored and processed.

Go live

Moving from simulation (paper trading / watch) to real capital and live automated execution at a connected broker.

L

Live trading

Executing a strategy with real capital at a connected broker according to its rules and schedule.

M

MiFID II

Markets in Financial Instruments Directive II — the EU framework that shapes investor protection, transparency and conduct rules for investment services.

N

No-code

Building strategies through visual blocks and forms rather than writing code.

P

Paper trading

Simulating live market conditions without risking real capital. Often used after backtesting and before going live.

Portfolio

The set of holdings (cash and assets) resulting from one or more strategies.

Portfolio rebalancing

Adjusting holdings back toward target weights when drift, rules or schedules require it.

R

Robo-advisor

An automated advisory or portfolio service that allocates and rebalances according to a model. ActionAlgo emphasises inspectable rules rather than a black box.

Rules / Strategy rules

The explicit if/then logic that defines when and how a strategy allocates, enters, exits or rebalances.

S

Sharpe ratio

A risk-adjusted return measure that compares excess return to volatility. Higher values generally indicate better return per unit of risk taken.

Strategy

A named set of rules that defines how capital should be allocated across assets over time.

Strategy marketplace

A catalogue of ready-made strategies that users can explore, compare, watch and adapt.

T

Transparent rules

Strategy logic that remains visible and editable — not a black-box recommendation.

U

UCITS ETF

An ETF structured under the UCITS framework commonly used for retail distribution in the EU/EEA.

V

Visual builder

A drag-and-drop interface for composing strategy rules without writing code.

Volatility

How much an asset or portfolio's returns fluctuate over time; a common measure of risk.

W

Watch

Following a strategy's signals and simulated or live behaviour without necessarily allocating capital yet.