Features
Learn more about strategy backtesting features
Ticker Selection
A ticker is a unique symbol used to identify a publicly traded stock. It is typically a short alphanumeric code that represents the name of the company or financial instrument. For example, the ticker for Apple stock is "AAPL" and the ticker for the Bitcoin to Tether exchange rate is "BTCUSDT".
Tickers are used to reference and track stocks and financial indices on trading platforms and financial websites. They are also used to transmit real-time price movement information, such as stock quotes, transaction volumes, and price changes.
More info : Investopedia
Interval Selection
The choice of timeframe is an important element in developing a trading strategy. It corresponds to the duration of the charts or data used to analyze the price movements of a financial asset. Timeframes can range from a few seconds to several years.
The choice of timeframe mainly depends on the trading style adopted and the goals of the investor or trader. Here are some examples of timeframes and their characteristics :
Short-term traders usually : use short timeframes such as tick, minute, or hourly charts to capture short-term price movements and make quick decisions on short-term positions. This type of trading requires high reactivity and constant monitoring of price movements.
Medium-term traders : use longer timeframes such as hourly, daily, or weekly charts to identify medium-term trends and take positions that last several days or weeks. This type of trading requires less reactivity than short-term trading, but requires regular monitoring to make timely decisions.
Long-term investors : use very long timeframes such as monthly or yearly charts to analyze long-term trends and take positions over periods of several years. This type of trading requires patience and discipline, as short-term price movements are less significant for investment decisions.
The choice of timeframe also depends on the volatility of the financial asset and the historical analysis period. The higher the volatility, the shorter the timeframe should be to avoid making decisions based on random price movements. Similarly, the historical analysis period should be adapted to the timeframe to avoid selection biases and strategy specification errors.
Indicators Selection
Technical indicators are statistical/mathematical tools used to analyze price charts and identify trends and buy or sell signals in financial markets. These indicators are based on mathematical formulas applied to prices and/or traded volumes. They can be used alone or in combination with other indicators and technical analysis techniques to help traders make investment decisions.
There is a wide variety of indicators in technical analysis, each with its own advantages and disadvantages. Here are some examples of commonly used indicators :
Moving Averages : indicators that calculate the average of prices over a given time period. They help identify the overall trend of the market.
Oscillators : indicators that measure the strength and direction of price trends. The most commonly used oscillators are the Relative Strength Index (RSI), the Moving Average Convergence Divergence (MACD), and the Stochastic Oscillator.
Trend indicators : indicators that measure the strength and durability of a trend. The most commonly used trend indicators are the Average Directional Index (ADX) and the Parabolic SAR.
Volume indicators : indicators that measure the amount of transactions performed on a given market. The most commonly used volume indicators are the Accumulation/Distribution Line (ADL), the Chaikin Oscillator, and the On-Balance Volume (OBV).
More info : Investopedia
Time Frame Management
Technical indicators are key tools for analyzing price movements in financial markets. They help detect trends, trend reversals, and potential entry and exit points for traders. Technical indicators are based on mathematical formulas and are applied to price charts to provide buy and sell signals.
The choice of timeframe for technical indicators is important as it can influence their relevance and effectiveness. Here are the different timeframes used for technical indicators :
A Stop Loss is an automatic sell order that is placed on a financial asset at a specified price. When the price of the asset reaches the specified level, the order is executed and the asset is sold in order to limit losses for the investor. Stop Loss is often used as a measure of protection against significant losses in trading and investment strategies.
A Take Profit is an automatic sell order that is placed on a financial asset at a specified price. When the price of the asset reaches the specified level, the order is executed and the asset is sold in order to realize a profit for the investor. Take Profit is often used to automatically close a profitable position without having to continually monitor the price movements of the asset.
In summary, a Stop Loss is used to limit potential losses on a position, while a Take Profit is used to realize potential gains on a position. These two tools are often used together in trading and investment strategies to manage risks and potential returns.
More info : Investopedia
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