Once you have a system that looks profitable and robust , you now need to create a tradeplan around it. Let’s consider a basket trading system. Our question is based on the current account balance how many contracts of each market should we trade in order to have proper risk management. In order to solve this problem I develop a simple but powerful concept called Dynamic margin. We will show this concept in this article using TradersStudio to calculate this.
We have been discussing functions that are unique to TradersStudio in our recent blog posts. While understanding the powerful built-in features of the software is excellent, it’s also worth revisiting some of the analysis that we do when building systems. This is especially important as in my conversations with traders, I have only found a small percentage of stock traders who trade using a mechanical approach. I find it hard to believe, but many stock traders believe that mechanical systems cannot be developed to trade stocks that outperform a “buy-and-hold” strategy. In this post I would like to explore some of the reasons why traders believe this. In a follow-up post we will discuss how TradersStudio solves all these issues presented.
Many times when we show examples of systems in action, it can pose the following question: this sounds great in theory, but can you show me an example of this really working? With TradersStudio, we can demonstrate and also dissect systems in clever ways to show why they work and don’t work. Recent posts have discussed using equity curve feedback to augment a system and improve its performance. In this post, we will discuss a potential real-life situation where equity curve feedback can improve an already lucrative trading algorithm.
Using TradersStudio, we can show how equity curve feedback to determine which system to run can help enhance your profitability. Unlike the previous post wherein we used the equity curve to help us decide when to trade, here we use the curve to help us decide which system to use. Turns out that this can be a powerful and potent strategy to add to your toolbox.
Equity curve feedback is a powerful method that can help improve your trading algorithm’s performance, and this method is also very easy to implement in TradersStudio. The idea behind this technique is that you can use equity curves to help you filter your trades and increase the statistical probability that they will be successful. TradersStudio makes it easy to see how a system can be improved with this technique.
Testing a Trading System on a Portfolio is not easy to do in most backtesting software but it’s very easy to do in TradersStudio.
In a recent post of mine, I discussed testing Walk Forward Optimization on a portfolio using TradersStudio. While this video isn’t focused on one particular optimization strategy, it does show you how you can use this software to test any trading system on a portfolio. I would strongly encourage you to take a look and consider how you might use TradersStudio to test your strategies!
I created this video on TradersStudio awhile back but looking back at it, I feel it’s a good introduction to the power of the software for all traders (including myself). I built TradersStudio for my own research because I know what real traders need. The best features of this software are those features that almost all traders can take advantage of, such as walk-foward optimization and other tools to properly calculate almost any trading strategy of which you can think.
Welcome to the TradersStudio Blog. My name is Murray Ruggiero. I am Vice President of Research and Development for TradersStudio and I designed this product to fill my own trading needs. Broadly, my goal was to develop a product that I could use for my money management business. This all started back in 2002 as I was tired of not being able to do the things I wanted to in terms of developing trading systems and implementing money management. I came to the realization that if I developed my own platform, then I could not only dream up any system that I wanted, but I could also test it and implement it in real-world applications. It took us three years to release our first version of TradersStudio back in September 2005 and since then we have spent over $1,000,000 in effort to develop this product.