It is discussed about the importance of using appropriate tools to assess market risks in financial trading systems. This is due to the fact that though human involvement is significant in early days, in today's analysis of market risks, things have been fully computerized and hence manual control has moved to computer numerical control and also human trading has shifted to algorithmic controlled finance (ACF). Such systems are called trading machines. As a result, the authors feel that statistical process control (SPC) techniques are very much required since financial systems take inputs which in turn will result in outputs that are bound to vary. This aspect is illustrated with the application of SPC to a specific case study of a simplified trigger trading machine. (43 refs.)
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