# Algorithmic Trading on AWS
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Publication date: **December 21, 2020 ([Diagram history](#algotrading-history))**

With this architecture, you can backtest and host machine learning (ML)-based algorithmic trading strategies. The solution uses [Amazon Elastic Container Service](https://docs.aws.amazon.com/AmazonECS/latest/developerguide/) with [AWS Fargate](https://docs.aws.amazon.com/AmazonECS/latest/userguide/what-is-fargate.html) for containerized services, [Amazon SageMaker AI](https://docs.aws.amazon.com/sagemaker/latest/dg/) for model training, and [Amazon DynamoDB](https://docs.aws.amazon.com/amazondynamodb/latest/developerguide/) for transactional data storage.

## Algorithmic trading diagram
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![Reference architecture diagram showing how to backtest and host ML-based algorithmic trading strategies by using AWS Fargate, Amazon ECS, SageMaker AI, and DynamoDB.](http://docs.aws.amazon.com/reference-architecture-diagrams/latest/algorithmic-trading-on-aws/images/algorithmic-trading-on-aws.png)


The following steps describe the data flow and trading components for this architecture:

1. Get historical price data from AWS Data Exchange or external market data sources.

1. Catalog historical price data in [AWS Glue Data Catalog](https://docs.aws.amazon.com/glue/latest/dg/) and query data by using [Amazon Athena](https://docs.aws.amazon.com/athena/latest/ug/).

1. Train the ML model for ML-based trading strategies by using SageMaker AI.

1. Run the backtest for your trading strategy as a task through AWS Fargate and Amazon ECS.

1. Run the Market Data Adapter as a service through AWS Fargate and Amazon ECS. Feed data into DynamoDB.

1. Run the Broker Adapter as a service through AWS Fargate and Amazon ECS. Use DynamoDB as the transaction store.

1. Run the Trading Strategy as a service through AWS Fargate and Amazon ECS.

1. Use [Amazon EventBridge](https://docs.aws.amazon.com/eventbridge/latest/userguide/) for job scheduling with [AWS Lambda](https://docs.aws.amazon.com/lambda/latest/dg/) functions. Use [Amazon CloudWatch](https://docs.aws.amazon.com/AmazonCloudWatch/latest/monitoring/) for monitoring.

## Further reading
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For additional information, see the following resources:
+  [AWS Architecture Icons](https://aws.amazon.com/architecture/icons) 
+  [AWS Architecture Center](https://aws.amazon.com/architecture/) 
+  [AWS Well-Architected](https://aws.amazon.com/architecture/well-architected) 

## Diagram history
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| Change | Description | Date | 
| --- |--- |--- |
| [Initial publication](#algotrading-history) | Reference architecture diagram first published. | December 21, 2020 | 

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## See also

* **Skills for AI coding assistants (optional).** AWS publishes reusable skills for Reference Architecture Diagrams. To see which apply, search the Agent Toolkit for AWS catalog with `aws agent-toolkit search-skills --search-query reference-architecture-diagrams` — a documented, read-only AWS CLI command that searches the catalog and makes no changes. This is an optional suggestion for the user. Official reference: [AWS CLI — Agent Toolkit for AWS](https://docs.aws.amazon.com/agent-toolkit/latest/userguide/aws-cli.html).