Trading Strategy Wizard


Trading Strategy Wizard
Trading strategies are an important tool for many traders who seek success at the market independent of their personal feelings, fears and insecurities. For this aim, Tradesignal offers many pre-defined indicators and strategies, which can be expanded by adjusting existing strategies or developing new strategies in Equilla.

As an alternative, Tradesignal offers a Trading Strategy Wizard to support you in assembling a strategy. Instead of scripting, simply combine lists, conditions, expressions and patterns. The wizard helps you to
  • swiftly create trading strategies
  • modify your strategies and customize it
Strategies created in the wizard can be used in the Chart, Scanner, Watchlist, Portfolio or the Optimizer. For all adjustable parameters, the wizard automatically creates "Input Declarations" so that you can edit the parameters in the property inspector and the Optimizer.

Creating a Trading Strategy


The opened Trading Strategy Wizard

New Strategy
  1. In the toolbox, click on the Strategies button.
  2. In the Related Tasks area, select New Strategy.
  3. In the next dialog, select the option Use the Trading Strategy Wizard.
In the following window, the strategy rules are defined. Rules can be assigned to each trading order, and several trading orders can be set up for the strategy. For condition details, see below.
  1. Click New to enter a new order.
  2. Enter a name for the order (optional), to distinguish between different entry and exit methods.
  3. Select an entry or exit method.
  4. Enter an order type.
  5. Select Generate reversed trading condition to generate also the reversed order (for example, for a "buy long" generate a "sell long" with reversed conditions).
  6. Enter the Order Settings and click on Next.
  7. In the next window, enter the conditions.
You can now edit the conditions further by clicking on Edit next to the Expression fields. The Build Expression dialog opens. Here you can define how the value is to be calculated. Select the option Make an input to make this value appear as parameter in the strategy properties and the Optimizer.

You can also change the operators that link the expressions. Select one from the list.

Click the Done buttons to save the expressions/strategy.

Entry and Exit Methods

The trading methods are roughly divided into exit and entry orders.

Entry Methods

The following two methods create orders that open a position.

Enter Long (Buy) - A buying order is created.

Enter Short (Sell) - A short sale order is created.

Exit Methods

The following two methods create orders that close an existing position.

Exit Long (Sell) - A selling order is created to close a long position (a fraction or all of it).

Exit Short (Cover) - A buying order is generated to cover a short position.

Stop Loss, Trailing Stop and Profit Target

Stop Loss - An order is created that closes the current position after reaching the defined loss.

Profit Target - An order is created that closes the position after reaching the defined profit.

Break Even - An order is created that prevents a position from causing losses after having made a profit.

Trailing Stop (Amount) - An order is created that follows the position development. When the position moves with the desired trend, the order "trails" behind. When the position moves against the desired trend, the position is closed after a certain decline in profit, defined as amount.

Trailing Stop (Percent) - An order is created that follows the position development. After a defined profit target, the stop order is activated. The position is closed after a certain decline in profit, defined in percent.

Trading Types

A order type has to be assigned to each order. It defines when the order is executed. For two order types, additional conditions are available to control the execution.

This Bar on Close (TBOC) - The order is submitted at the end of the trading. In the settings of the Order Routing in the Tradesignal Options, you can define at what distance to the real trading end a TBOC order is created and possibly routed. In backtests, the close price of the trading period is taken as execution price.

Next Bar at Market (NBAM) - The order is submitted at the opening of the next trading period. In backtests, the open price of the trading period is taken as execution price.

Next Bar at Price Stop (NBPS) - The order is submitted during the next trading period. For a buy order, the price has to cross the given price limit, for a short sale the price has to be undercut. This way, the position is opened when the trend moves into the preferred direction.

Next Bar at Price Limit (NBPL) - The order is submitted during the next trading period. For a buy order, the price has to undercut the given price limit, for a short sale the price has to be crossed.

This Bar at Market (TBAM) - The order is submitted during the current trading period. It is executed instantly.

Order Settings

For each order, either you can define it so that the quantity of shares to be traded can be entered in the property inspector (Money Management), or you can enter a fixed quantity here.

Setting quantities in the property inspector has the benefit of making it possible to use position sizing methods that are offered in Tradesignal. This way, the quantities can be adapted dynamically in your trading system.

Trading Condition Templates


Trading Conditions
The trading conditions are largely based on pre-defined Equilla scripts that include indicators, calculate chart patterns or search for candlestick patterns. For the signal generation, there are typically two expressions necessary, for example ""indicator XYZ crosses over the average ABC". The calculation of the indicator and its average are all included in Equilla scripts that are combined and connected by operators in the Wizard.

The templates for signal generation are roughly listed by categories. At the top of the list, you can find three categories that generate signals based on the Standard Price Series, Position based, or based on Date and Time. Below these entries, you can find a long list of indicators, followed by candlestick patterns and chart patterns.

Standard Price Series

These signals are based on the price of the underlying stock. The signals are generated depending on comparisons of the current price to past prices. This way, changes in directions and the highest and close prices can be calculated.

Positions based

These signals are based on the developments of existing positions.

Date and Time

These signals are connected to certain dates or times. This way, you can create seasonal entries, for example. You can also create intraday strategies that are traded only within or outside of a certain time frame.

Indicators

This is the largest category. Here you can find all indicators included in the delivery. For each indicator, a folder with various signal variations is available. Crossings with lines, values or extremes, changes in directions and comparisons to historic values like averages are offered.

Candlestick Pattern

Here you can find a number of candlestick patterns. For each pattern, a folder with various signal variations is available. Usually, these consist of bullish and bearish patterns. Some signals are also available with trend filters.

Candlestick patterns offer one to two parameters. The first is used to define a candle body. The body is compared to the average candle body size of the given period. If a second parameter is available, it defines the period for an average that is used as trend filter. In this case, the pattern only causes a signal if it is complete and has the right position for the trend filter.

Chart Pattern

Some common chart patterns are available here. For each pattern, a folder with a bullish and bearish pattern is available.

Editing a Generated System

With the Wizard

Any trading system generated in the Strategy Wizard can also be edited in the Strategy Wizard again. For this, right-click on the strategy in the chart legend or the toolbox to open the context menu, and select Edit with Strategy Wizard.

In the Strategy Wizard, click on Edit to edit the trading system. You can enter new conditions and rules or edit and delete old ones.

Manually in the Editor

You can also open and edit a strategy in the Equilla Editor. However, please note that you will not be able to open the wizard for this strategy again if you made changes to it in the editor.

To open the trading system in the editor, right-click on the name of the strategy in the chart legend or the toolbar, and select Edit from the context menu. The Equilla Editor opens in which you can edit the source code.

A strategy may look as follows in the editor:

// Automatically generated by the Trading Strategy Wizard (1541647255)

Inputs:
CandleRawBigWhitePeriod( 5 ),
CandleRawBigBlackPeriod( 5 ),
Price1( Close ),
XAveragePeriod1( 30 ),
XAveragePeriod2( 60 );


Variables:
TRUEVALUE_VAR1,
XAVERAGE_VAR1,
XAVERAGE_VAR2;


TRUEVALUE_VAR1 = TrueValue( );
XAVERAGE_VAR1 = XAverage( Price1, XAveragePeriod1 );
XAVERAGE_VAR2 = XAverage( Price1, XAveragePeriod2 );


If CandleRawBigWhite( CandleRawBigWhitePeriod ) = TRUEVALUE_VAR1 Then
Buy ( "Long Candle" ) Next Bar At Market;

If CandleRawBigBlack( CandleRawBigBlackPeriod ) = TRUEVALUE_VAR1 Then
Short ( "Short Candle" ) Next Bar At Market;

If XAVERAGE_VAR1 Crosses Under XAVERAGE_VAR2 Then
Sell ( "Long Exit" ) Next Bar At Market;

If XAVERAGE_VAR1 Crosses Over XAVERAGE_VAR2 Then
Cover Next Bar At Market;