Throughout my years of experience in the finance industry, I have found that traders – all types, from futures to commodities – often want to use TradersStudio to build an intraday system. I then ask these traders, have you built and tested a successful end-of-day system? Trading end-of-day is like driving an old Toyota through town. It might not be glamorous, but you’re not going to lose a ton of money really quickly either. You move slower so you have more time to react. You can hit the brakes if the road takes an unexpected turn. By contrast, trading intraday is like driving the latest Ferrari through town. It’s fast and glamorous, but unless you’ve learned to drive really well at the slower speeds, you’re going to crash when the road takes an unexpected turn. Put another way, would you give a newly licensed 16 year old the keys to a half a million dollar Lamborghini?
Speed is essential to backtesting platforms. This is why when I was beginning to think about the new version of TradersStudio, I knew that I needed to create a version that was faster. Real traders and systems developers know that one of the longest parts of developing a new system is the time that it takes to test your hypotheses. Systems development is a little like laboratory work. We know certain basic premises about the markets and we often have a rough idea of the system we want to develop. However, we also know that development of particularly robust systems takes a lot of time. I recently used the new TradersStudio to develop a system in a fraction of the time that it would have taken me with the old version.
As you may have noticed, we recently released a new version of TradersStudio. New version of TradersStudio is now up to 10 times faster. It does this because it now runs in parallel on multicore machines. You can run this new version of TradersStudio on the same machine and same time as TradersStudio Pro and this new version is much much faster, On a basket of 30 markets about ten times faster on a six core machine and 6 times faster on a quad core. These numbers are for Intel based processors. In this post, we’ll explore a couple of ways in which the new version of TradersStudio will help you test complex strategies like never before!
In this post, we’ll take at how we can use CSI’s “Unfair Advantage” program to create TradersStudio stock contracts. This is one of the most powerful and unique features of TradersStudio. As we’ve been describing in our previous posts, given unadjusted data, split-adjusted data, and dividend-adjusted data, TradersStudio can re-create a more realistic sequence of trades. In fact, without the TSSC (TradersStudio Stock Contracts), your backtesting results will show significant distortions.
In the last blog post, I took a look at the three types of data that TradersStudio uses: split-adjusted, dividend-adjusted, and unadjusted data. We also took a look at how each data stream is used within the platform and showed a simple example of using this data with a simple trading strategy using Microsoft. As traders, however, we are often asked to consider the question of how our strategies compare to simply “buying and holding” the stock. That is to say, if we were to have bought one share of Microsoft when it first started, what would that be worth today? Fortunately, TradersStudio allows us to answer that question relatively easily.
TradersStudio has some awesome capabilities to analyze stocks. In fact, while developing the software I wanted to make 100% sure that this analysis was done correctly. Many trading platforms take an overly simplistic view of stock analysis. They simply treat the price of the stock as being, well, the price of the stock. But there are two aspects of a stock’s price that make that a more tricky problem. The first is that many stocks – especially large-cap stocks that many strategies trade – pay dividends. The other problem is that stocks sometimes issue splits. Both of these aspects must be taken into account when developing a quality trading strategy. Thankfully for us traders, TradersStudio has already thought this out.
We recently did a video highlighting how easy it is to solve a common problem using TradersStudio. Indexes change all the time. Recently the DOW index was adjusted to switch a few stocks. Building a system using a basket of stocks in an index requires understanding how to deal with index changes. This video describes how easy it is to deal with that within TradersStudio.
TradersStudio has many powerful features for Stock, ETF traders. In fact it is easy to build a Relative Strength System stock, ETF system in TradersStudio. The kind of systems used by large institutional many managers.
TradersStudio has powerful tools to build complex systems taking into account a variety of data sources. We have already shown some ways in which we can build systems in previous blog posts, however this system is very comprehensive, taking into account 124 different ETFs with advanced coding strategies. This system was originally presented during a September 12 talk and has been included on this site so that readers can try it in TradersStudio and develop their own strategies.
As we have said before on this blog, TradersStudio was designed by real traders for real traders. This means that a lot of thought was put into making TradersStudio evaluate strategies correctly. A lot of backtesting platforms will make assumptions in their software that may make a system looks good on paper, but in reality the system isn’t effectively tradable in the real-world market. When designing a backtesting platform, there are certain considerations that must be made to make it mimic the markets as closely as possible given the data that we have. Limit orders are a prime example of this. Do we fill an order when the limit is touched or do we only fill if the limit is exceeded?. When we evaluate a trading strategy which uses limit orders it’s important that we understanding Limit orders and backtesting.
TradersStudio incorporates a wide variety of unique features that are not seen in other backtesting platforms. In previous posts we have discussed how some of those features can help you in system design and testing. We now turn to another unique feature of TradersStudio: the ability to sync trades. We will explain what this means, show you how to implement this feature in your systems, and also give you an example system that utilizes this feature successfully.