Overview

In the following chapters, how to build a full-fledged trading system will be explained.

The process involves only the use of a user friendly Graphical User Interface. No coding required. You can define when to go long, when to go short and when to liquidate the position. You can even select stop loss and take profit conditions. You select between thousands of already implemented elementary algorithms, patterns and candlestick configurations and combine them at will.

This is the core of our software.

Overview

High-Level Introduction

Elementary Trading Algorithms

Trading Conceiver has elementary trading algorithms already implemented. There are literally thousands of them. They are all standardized, meaning they are easy to understand and remember. You can customize each of them through input parameters. These algorithms are usually referred to as elementary because they are simple, they are not a full-fledged trading system.

How to Combine the Elementary Algorithms

You build your own trading systems composing the elementary trading algorithms at your will, in order to build a more complex logic. The way you combine the elementary algorithms together is through logical operators. So for instance you can require that two elementary algorithms must be both satisfied in order to buy a stock. Or you can give a list of elementary algorithms to consider and require that just one of them to be satisfied in order to sell the stock. As another example, you can give a list of elementary algorithms to consider and require that at least two of them must be satisfied in order to liquidate a position.

Define When to Go Long, Short, Liquidate, Stop Loss and Take Profit

You can specify when to go long, when to go short and when to liquidate the position. You can even set up stop loss and take profit conditions. So you can define:

When to go long
When to go short
When to liquidate the long position
When to liquidate the short position
Stop loss
Take profit

You specify only the ones you deem appropriate, not necessarily all of them. Each of the previous sections correspond to a tab in the user interface.

You Built a Trading System

Once you have decided how to combine the elementary algorithms for taking a long or short position, how to combine them for liquidating a position, and once you have set up stop loss and take profit rules, you basically built a trading system. That's you creation. The way you trimmed each elementary algorithms and the way you combined them is unique.

Run the Simulation and See the Results

Once you have done all of that, just run the simulation of the trading system you devised. Trading Conceiver will make all the necessary calculations and show you the results in charts, tables and statistics. Results will show what would happen if you applied your trading system to the historical file, in the past.

Trim Your Trading System

Now you can make all the necessary modifications to your trading system and trim it. Run the process all over again until you are satisfied with the results.

Workflow

So the workflow for building your own trading system is the following:

Select the elementary trading systems of your interest, already defined in Trading Conceiver.
Combine them in order to make a more complex logic.
Repeat the previous steps for defining when to go long, when to go short, when to liquidate, for stop loss and take profit orders.
Run the simulation and watch the results.
Loop over to refine the trading system.