Manual creation of a trading strategy - the old way
Manual development of a new trading strategy is a slow process.It starts with trader using his experience and knowledge to pick up the elements of the trading strategy like technical indicators, price patterns, entry and exit order types and general strategy design.
When the prototype is finished, strategy is tested on the historical data to prove its profitability. The backtest often reveals that the strategy results are not acceptable.So the trader has to alter it, add or change some indicators, try different ideas, different values and then test it again.It is a long trial-and-error process with numerous iterations, revisions and testing until the strategy achieves acceptable results.
Now imagine you have a tool that does all this manual work for you, and does it 1000x faster...
The StrategyQuant way
StrategyQuant requires only a fraction of the second to automatically generate new trading strategy. It uses various combinations of technical indicators and price patterns as the entry rules, combines it with various order types (market, limit, ...) and with various exit rules (fixed profit target, trailing stop, etc..).
In the end it tests the new strategy on the historical data to find out if it is profitable.StrategyQuant can do this over and over again, generating and testing tens of the new unique strategies every second! All you have to do is pick up the best ones!
How does it works? - Using Genetic Evolution
Genetic Evolution takes the process of finding a suitable trading strategies even further.In this mode StrategyQuant first creates a number of random strategies, which are used as the initial population in the evolution.
This initial generation of strategies is then "evolved" over successive generations using genetic programming technology.This process imitates the evolution - the algorithm chooses the fittest strategies (using selected performance criteria) in every generation, and the group of fittest candidates is then used to produce new generation of trading strategies.