Execution Precision: Tick vs Candle

Algo Architech uses a dual evaluation system that processes entries and exits differently. This isn’t a limitation — it’s a deliberately engineered advantage that protects you from market manipulation while ensuring lightning-fast risk management.

The Two Evaluation Cycles

Why Entries Use Candle Closes

The Wick Spoofing Problem

Large players and algorithms frequently push prices sharply during a candle only to reverse before it closes — a tactic known as wick spoofing:

1-Minute Candle:

   High ── ╱╲    ← Wick pushed up to trigger retail stop-losses
           │ │      and entry signals, then pulled back
   Close ──│─│── ← Candle ACTUALLY closed here (much lower)
           │ │
   Low ────╵ ╵
            
If entry evaluated on ticks:  → FALSE ENTRY triggered by wick ❌
If entry evaluated on close:  → No signal (close didn't confirm) ✅

How Algo Architech Protects You

By evaluating entry conditions only on completed candle closes, the engine mathematically ignores this manipulative noise. A condition like RSI > 70 is only checked against the RSI value at the candle close — not the fleeting intrabar spikes that might momentarily push RSI above 70 before snapping back.

Why Exits Use Live Ticks

The Protection Priority

While entries can afford to wait for candle closes (a few minutes at most), exits cannot. If a genuinely catastrophic market move occurs, waiting for a candle to close could mean:

• On a 5-minute chart: waiting up to 5 minutes while losses compound
• On a 15-minute chart: waiting up to 15 minutes during a flash crash
• On a 1-day chart: waiting until end of day — potentially ruinous

How It Works

Stop-Loss set at -₹3,000

Candle in progress (5-minute timeframe):
  Tick 1:  P&L = -₹1,500  → SL not triggered
  Tick 2:  P&L = -₹2,200  → SL not triggered
  Tick 3:  P&L = -₹3,100  → SL TRIGGERED IMMEDIATELY ← Live tick evaluation ✅
  
  (Exit order placed NOW — doesn't wait for candle close)

The Best of Both Worlds

┌─────────────────────────────────────────────────────────┐
│  ENTRY CONDITIONS        │  EXIT STRATEGIES              │
│                          │                                │
│  Evaluated on:           │  Evaluated on:                 │
│  CANDLE CLOSES           │  LIVE TICKS                    │
│                          │                                │
│  Why:                    │  Why:                          │
│  • Ignore wick spoofing  │  • Instant SL protection       │
│  • Confirmed signals     │  • No waiting during crashes   │
│  • Filter manipulation   │  • Tick-by-tick TSL tracking   │
│                          │                                │
│  Result:                 │  Result:                       │
│  Higher quality entries  │  Maximum capital protection    │
└─────────────────────────────────────────────────────────┘

This dual system gives you:

1. Stability in entry signals — no false breakouts
2. Speed in risk management — instant protection when it matters most

Implications for Strategy Design

Summary

This architecture mirrors how institutional trading systems operate — careful, filtered entries paired with ultra-fast risk management. You get the best of both worlds automatically.

You’ve Completed the Strategy Builder Guide! 🎉

You now understand all four steps of the Algo Architech Strategy Builder:

1. ✅ Entry Conditions — When to enter
2. ✅ Position Builder — What to trade
3. ✅ Adjustment Rules — How to adapt
4. ✅ Exit Strategy — When to exit
5. ✅ Tick vs Candle — How it all executes

Ready to put it all together? Create your first strategy, backtest it, and see the results.

→ Next: Running Your First Backtest (coming soon)