To make the right choice it is equally important to see the small details and the big picture. Our charting is one of the best in the industry, giving you instant access to all of the information that you need.
Multi time frame analysis, fast response time, complete interactivity with everything you see—all at your fingertips.
We feel that you should have the freedom of choice, and that's why we have added support for over 20 different data feeds and 10 brokers to MultiCharts.
Competition is good, that's why you can pick the providers that suit you best, and change them at any time. No strings attached.
Proper backtesting helps you determine if your strategies will make or lose money.
Dynamic portfolio backtesting is capable of applying your strategy to many symbols on a bar-by-bar basis, determining which trade is the optimal one at any given time. It can be an invaluable tool during technical analysis and strategy development.
EasyLanguage has been in development for over 20 years, so it has one of the largest libraries of trading ideas already implemented.
It is so useful to traders, it is considered the industry-standard programming language. In addition to hundreds of studies that come with MultiCharts, you can create your own, change existing ones or import any EL code that you can find.
It is very important to accurately see how you are doing. The performance report has more than 200 performance measures, including various metrics, ratios, and interactive performance charts. The report can also monitor real-time trading, since it recalculates on every new order that has been placed.
Some traders find optimization very useful, because it saves a lot of time searching for optimal inputs for a particular strategy.
Genetic optimization employs a complex algorithm that tests possible inputs in a way that mimics biological evolution. This approach is a lot faster than trying every possible combination, and it also helps avoid outliers and curve-fitting.
When you are looking for opportunities, the Market Scanner can be an invaluable tool.
You can instantly sort up to 5000 instruments to find ones that meet a certain criteria, apply indicators to alert yourself when a condition occurs, and open charts of the necessary symbols for a more detailed look.
- Fully enabled trading platform Free EOD data from Google, Yahoo and MSN Use of any supported data feed or broker Live trading
Managing Market Trading System Portfolios
Design, Development, and Trading of Multi-Trading System Portfolios
Combining Ugly Equity Curves
Real trading systems in a live market environment experience drawdowns as well as transaction costs and in the case of active algorithmic trading, transaction costs can take a toll on the equity curve. While most traders seek geometric returns with the least amount of adverse excursion, most individual trading algorithms don't have the equity curve that we imagine. The best way to reduce curve fitting while seeking to improve a single trading system is to accept the reality that individual trading systems typically have ugly equity curves. The best way to improve risk adjusted returns in algorithmic trading systems portfolios is to combine a diverse set of strategies. There is no perfect investment portfolio that can beat the risk free rate of return without drawdowns or adverse excursions. The goal of any investment is to produce the best risk adjusted returns to beat the market averages in any market environment. Combining real trading systems into a portfolio of trading systems is the investment theme we use for short term algorithmic trading systems in an actively trading investment portfolio.
Managing Drawdowns
Since every investment portfolio endures drawdowns, it is critical to manage risk by understanding the risk associated with the trading system or trading systems portfolio that is being traded. Anticipation of trading system degradation in a changing market environment as well as the technical errors associated with algorithmic trading allows us to manage risk by starting a portfolio or trading system for live trading after a hypothetical losing streak or drawdown. Favorable and unfavorable market conditions can be cyclical while the frequency of the cycles is more uncertain and unpredictable. What is certain is our ability to measure and manage risk based on these factors. Predicting market direction or cycles is not part of our strategy for trading. Recognizing a favorable entry point based on a hypothetical drawdown, allows us to measure our risk but it does not allow us to measure future profits. Past performance is not indicative of future results. We employ our trading strategies to help us measure the potential risk to reward ratio at each market cycle. Regime changes in the market are typical conditions where we pause trading and research the current market environment.
Modular Portfolio Design
Three tools we use for Portfolio Development. Portfolio Calculator, Multicharts Portfolio Trader, Portfolio Money Management Algorithms.
We want to combine strategies that are trend, countertrend, and mean reversion with strategies. We want to use strategies in a drawdown as well as those at equity peaks. Historical considerations also included different timeframes. All of our strategies are going through conversion to one minute charts so even if it is a strategy based on a 5 or 15 minute chart, it will be traded on one minute charts. A diverse set of markets is also a historical consideration. Since the pandemic, we have focused on the best opportunies in the stock index futures.
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