Trading System

A Trading System is nothing more than a set of rules that are applied to the performance of a particular financial instrument.

These rules include when it was decided to enter the market by buying the instrument, when to sell it, when to sell it Short (to earn a discount on the stock), when to exit the position that was previously assumed. Leaving a position can be determined by rules based on indicators or on money management rules. In any case, the event we have combined with the condition will take place in the future of the established condition.

The limit of the conditions for which one of the possible events must take place (Buy, Sell, ExitLong, ExitShort, TakeProfit, StopLoss, TrailingStop) is only the imagination and the experience of the trader.

To complete the project of a Trading System, in addition to writing the rules, you have to face three other steps

1. Backtest

Once the system is built, it must be verified on a series of historical data to evaluate its multiple characteristics, for example it could have gained but in only one trade and this event could not be repeated, or have generated an equity line at a loss, etc..

We can evaluate these features through beeAnalyzer.

2. Optimizer

The second step concerns the optimization phase, that is to say we define ranges of values within which beeTrader will calculate which of these would have generated the best performance.

3. Paper Trading

Once we have chosen the parameters we have to take one last step which is to send the system we have built ahead over time. With new data, in real time. To do this, choose the “Strategy” function and select “Paper Trading” which will execute system with real data but without using money.

Find out more about the EasyScript language in the user’s guide.