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CASE STUDY INTRO

Stock Trading Simulator

A high-performance algorithmic trading simulator providing real-time WebSocket market streaming and low-latency order execution.

INITIALIZING CASE STUDY ENVIRONMENT...
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Production ARCHITECTURE
6 CORE MODULES
ProductionFull-StackReal-TimeSystems

Stock Trading Simulator

A high-performance algorithmic trading simulator providing real-time WebSocket market streaming and low-latency order execution.

Duration
1.5 Months
Team Size
Solo Developer
Role
Full-Stack Developer
sb-stocks.app / product_demo
60 FPS
ORDER BOOK MATCHING ENGINE
SOCKET.IO + REDIS
BIDS (BUY ORDERS)
184.85500 SHRS
184.801,200 SHRS
ASKS (SELL ORDERS)
184.90350 SHRS
184.95800 SHRS
Order Execution Latency
< 8ms (Redlock Sync)
1. UPLOAD
Section 01

Project Overview

The Problem Statement

Algorithmic traders and finance students need a safe, realistic sandbox to test trading strategies against live market mechanics. Existing paper trading tools suffer from slow HTTP polling latency, lack order book depth, and fail to simulate high-frequency race conditions.

Engineering Motivation

To build a realistic trading engine, a platform must process price ticks over WebSockets with sub-20ms latency and enforce distributed locking so two concurrent orders never execute against the same shares.

Core Engineering Goals

  • Maintain sub-16ms chart re-rendering during rapid price tick bursts (60fps UI).
  • Achieve zero race conditions during concurrent limit order execution across distributed instances.
  • Provide full portfolio historical P&L tracking and risk metric analytics.

Target Audience

Fintech enthusiasts, algorithmic trading students, quantitative researchers, and software engineers learning real-time event-driven architecture.

Solution Approach: This simulator establishes a real-time event-driven trading environment. Socket.io maintains bi-directional streaming between client dashboards and the Node backend. Active order books reside in Redis in-memory caches secured with Redlock distributed locking, while settled trades persist to PostgreSQL.
Section 02

Key Capabilities & Features

Core technical features designed to fulfill project requirements with high reliability and performance.

Low-Latency WebSocket

WebSocket Order Execution

Executes market, limit, and stop orders instantaneously over bi-directional Socket.io channels with sub-10ms response times.

Dynamic Ledger

Real-Time Portfolio P&L

Recalculates net portfolio value, unrealized gains, and cash balances on every incoming price tick stream.

High-Throughput Matching

In-Memory Order Book Engine

Uses Redis in-memory data structures to maintain active bids and asks with microsecond lookup performance.

Section 03

Interactive Architecture Explorer

Hover or click on any system layer to inspect data flow topologies, connection pipelines, and security specifications.

SYSTEM BOUNDARY MAP6 CONNECTED MICROSERVICES
Hover nodes to trace data flow pipelines
FrontendID: frontend
ONLINE

Frontend Client Layer

Single-page responsive web client serving UI components, handling optimistic state updates, and streaming live server notifications.

Stack & Frameworks
React 19Socket.io Client
PROTOCOLHTTPS / WSS (WebSockets)
LATENCY BENCHMARK< 16ms render
THROUGHPUT60 FPS UI
SECURITY PROTOCOLCSP & Strict SameSite Cookies
Section 04

Technology Stack

Purposeful framework selection and technical rationale behind core architecture dependencies.

Frontend

  • React 19

    Declarative component lifecycle optimized for high-frequency chart re-renders.

  • Socket.io Client

    Automatic WebSocket fallback and binary protocol packing.

Backend

  • Node.js 22

    Asynchronous event loop capable of handling 5,000+ simultaneous socket connections.

  • Express.js

    Lightweight routing framework for RESTful auth endpoints.

Database

  • PostgreSQL 16

    ACID transactions ensuring zero missing balance anomalies.

  • Redis

    Sub-millisecond order book reads and distributed locks.

DevOps & Tooling

  • Docker

    Isolated containerization of Node backend, Redis, and PostgreSQL instances.

  • Google Cloud Run

    Serverless container deployment auto-scaling on WebSocket traffic.

Key Architectural Trade-Off Rationale

Express & Socket.io for Real-Time Streaming

Chose event-driven Node.js for low-overhead bi-directional WebSocket communication.

Redis for Low-Latency State

Bypassed disk I/O bottlenecks by holding live order books and price ticks in memory.

Redlock Distributed Locks

Prevented concurrent trade settlement collisions across multi-instance backend containers.

Section 05

Development Journey

Systematic engineering progression from initial domain research to production deployment.

Phase 1: Research1 Week

Order Book & Financial Matching Engine Study

Researched limit order book data structures, FIFO matching algorithms, and distributed locking strategies.

Deliverable: Matching engine technical specification document
Phase 2: Planning1 Week

WebSocket Protocol & Data Model Design

Defined WebSocket message schemas, transaction payloads, and PostgreSQL ledger schema.

Deliverable: Protocol spec & Database ERD
Phase 3: Development3 Weeks

Core Trading Engine & React Dashboard

Implemented Node Socket.io server, Redis order matching, Redlock synchronization, and React dashboard.

Deliverable: Fully functional trading simulator
Phase 4: Testing1 Week

Concurrency Load Testing & Benchmark

Simulated 1,000 concurrent trade requests per second using Artillery load testing to verify zero race conditions.

Deliverable: Load testing benchmark report
Phase 5: Deployment3 Days

Docker Containerization & Cloud Run Deploy

Containerized application microservices into Docker images and deployed to Google Cloud Run.

Deliverable: Production cloud container deployment
Section 06

Challenges & Solutions

Deep-dive into non-trivial engineering obstacles, root causes, and verifiable technical outcomes.

Problem Context:

Streaming 100+ price ticks per second directly to React state caused UI frame drops and browser lag.

Why it was difficult:

Frequent React re-renders triggered DOM reflows faster than the browser frame rate (60fps).

Engineering Solution:

Implemented client-side tick buffering and debounced chart state updates to align with requestAnimationFrame cycles.

Quantifiable Outcome:Restored silky 60fps chart rendering with sub-16ms frame times.
Section 07

Performance & Results

Empirical measurements, benchmark results, and production optimization techniques.

-80%
< 10ms
Order Latency
End-to-end limit order execution
+100%
60 FPS
UI Frame Rate
Maintained during peak price tick bursts
2.5k tps
2,500/s
Throughput
Transactions handled per second
0 Errors
100%
Data Accuracy
Zero balance anomalies in ledger audit
Google Lighthouse Audit Ratings
96/100
performance
98/100
accessibility
100/100
best Practices
100/100
seo

Applied Performance Optimization Techniques

  • In-memory Redis pipeline caching for active order books.
  • WebSocket message payload compression cutting socket network traffic by 50%.
  • Client-side requestAnimationFrame tick batching eliminating React render thrashing.
Section 08

Lessons Learned

Key engineering insights, architectural reflection, and takeaways for future systems design.

Building real-time financial systems requires separating volatile in-memory state (Redis) from durable ledger storage (PostgreSQL).

Distributed locks are mandatory whenever multiple asynchronous workers write to shared resources.

Section 09

Future Roadmap

Planned technical enhancements, new feature modules, and architectural extensions.

01Planned

Python Algorithmic Backtesting Engine

Allow users to upload custom Python trading scripts to backtest against historical price datasets.

02In Progress

Advanced Technical Indicators

Add MACD, RSI, Bollinger Bands, and Volume Profile overlays to the chart workspace.

03Planned

Live Market API Integration

Plug in Polygon.io real-time stock feeds for live market paper trading.