Trading System Services Architecture¶

Status: ✅ Core Services Implemented (v1.0.0) | 🚧 Enhanced Services In Progress (v1.1.0)

Overview¶

The Trading System is built on a microservices architecture with six core services, each responsible for a specific aspect of the trading system. All services are orchestrated by Prefect and communicate through REST APIs, Redis pub/sub, and shared PostgreSQL databases.

Microservices Architecture¶

1. Data Ingestion Service ✅¶

Purpose: Collect market data from multiple sources (Polygon.io, Yahoo Finance, Alpaca API)

Components: - Polygon.io API client - Yahoo Finance API client (via yfinance) - Alpaca API client - Data validation (Pydantic models) - Prefect flows for scheduled ingestion - Data quality checks - Error handling and retry logic

Responsibilities: - Fetch hourly market data (OHLCV) - Fetch company fundamentals and financials - Validate data integrity - Store raw data in PostgreSQL - Cache frequently accessed data in Redis - Publish data events to message queue

Prefect Flows: - fetch_market_data: Hourly data collection - validate_data_quality: Data validation pipeline - archive_old_data: Data lifecycle management

Status: ✅ Fully implemented (v1.0.0)

2. Strategy Engine Service 🚧¶

Purpose: Execute trading strategies and generate signals

Components: - Strategy framework (plugin-based) - Signal generation logic - Portfolio calculations - Strategy configuration management

Responsibilities: - Load and execute trading strategies - Calculate technical indicators - Generate buy/sell signals - Manage strategy state and parameters - Log strategy performance metrics

Prefect Flows: - run_strategy: Execute strategy logic - calculate_indicators: Technical analysis - generate_signals: Signal generation - backtest_strategy: Historical strategy testing

Status: 🚧 Planned for v1.1.0

3. Execution Service ✅¶

Purpose: Execute trades and manage orders

Components: - Alpaca trading API client - Order management system - Position tracking - Trade execution logic

Responsibilities: - Place buy/sell orders - Manage order lifecycle - Track positions and P&L - Handle order fills and partial fills - Implement order types (market, limit, stop)

Prefect Flows: - execute_trades: Process trading signals - manage_orders: Order lifecycle management - update_positions: Position tracking - reconcile_trades: Trade reconciliation

Status: ✅ Core functionality implemented (v1.0.0)

4. Risk Management Service 🚧¶

Purpose: Monitor and control trading risks

Components: - Position sizing algorithms - Risk limit validation - Portfolio risk calculations - Risk monitoring dashboard

Responsibilities: - Calculate position sizes - Validate risk limits - Monitor portfolio exposure - Generate risk alerts - Implement circuit breakers

Prefect Flows: - calculate_position_size: Position sizing - validate_risk_limits: Risk validation - monitor_portfolio_risk: Continuous risk monitoring - generate_risk_alerts: Risk alerting

Status: 🚧 Planned for v1.1.0

5. Analytics Service ✅¶

Purpose: Performance analysis and reporting

Components: - Performance calculation engine - Backtesting framework - Reporting generation - Data visualization

Responsibilities: - Calculate strategy performance metrics - Generate performance reports - Create backtesting results - Analyze trade patterns - Generate portfolio analytics - Calculate technical indicators

Prefect Flows: - calculate_performance: Performance metrics - generate_reports: Report generation - run_backtest: Historical testing - analyze_trades: Trade analysis

Status: ✅ Core functionality implemented (v1.0.0)

6. Notification Service 🚧¶

Purpose: Handle alerts and communications

Components: - Email notification system - SMS alerts (optional) - Dashboard notifications - Log aggregation

Responsibilities: - Send trade notifications - Alert on system errors - Notify on risk violations - Aggregate and format logs - Manage notification preferences

Prefect Flows: - send_trade_alerts: Trade notifications - monitor_system_health: System monitoring - aggregate_logs: Log processing - send_daily_summary: Daily reports

Status: 🚧 Planned for v1.1.0

Service Communication¶

Inter-Service Communication¶

• REST APIs: Synchronous communication between services
• Redis Pub/Sub: Asynchronous event-driven communication
• Prefect Flows: Orchestrated workflows across services
• Shared Database: PostgreSQL for data persistence

Service Dependencies¶

Data Ingestion → Strategy Engine → Risk Management → Execution
     ↓                ↓                ↓              ↓
Analytics Service ← Notification Service ← Redis ← PostgreSQL

Service Status Summary¶

See Also: - Architecture Overview - System overview - Prefect Architecture - Workflow orchestration details - Database Architecture - Service-specific database schemas - UI Architecture - Frontend implementation