Record Keeping: Your Best Defense After the Fact

When trades go wrong, clean records separate error from excuse. Logs and decision notes create accountability and satisfy regulators.

Documentation isn’t busywork; it’s the evidence that your process was sound even when outcomes weren’t.

Why it matters

Disputes, audits, or internal reviews hinge on data. Without proper records, you’re defending yourself with memory, not facts.

Common mistakes

• Storing logs in volatile local files.
• Failing to link decisions to market context.
• Ignoring retention rules until regulators ask.

Implementation steps

Timestamp everything

Record orders, fills, and operator notes with synchronized clocks.

Capture context

Store screenshots or market snapshots around key decisions.

Enforce retention

Automate policies that keep data as long as regulations require.

LiquidityAI tie-in

• Immutable storage links orders to market data and notes.
• Searchable archives simplify investigations.
• Retention settings satisfy regional rules automatically.

Case sketch (composite)

After a disputed fill, detailed records from LiquidityAI proved the order was routed correctly, avoiding fines and reputational damage.

Takeaways

• Good records turn investigations into checklists.
• Contextual data beats recollection.
• Retention policies should be automated, not ad hoc.

LiquidityAI provides tools and education for systematic trading. This article is for informational purposes only and does not constitute investment advice. Trading involves risk, including possible loss of principal.