Algorithmic Trading Design
We offer a wide range of unique algorithmic trading strategies for companies large and small – companies like yours. We partner with our clients from start to finish, focusing on their needs while producing new ideas, developing effective strategies and designing high quality and scalable solutions.
Any organization can move forward with small incremental changes, but building for the future in today’s rapidly evolving environment means taking bold chances and making insightful decisions.
There are essentially five steps in build and manage an algorithmic trading strategy
Preliminary Research
This step focuses on developing a strategy that suits factors such as personal risk profile, time commitment and trading capital which all are important to think about when developing a strategy. We can then begin to identify the persistent market behaviors. Having identified a market behavior we begin to code the trading strategy.
Backtesting
This step focuses on validating the trading strategy. This includes checking the code to make sure it is doing what you want and understanding how it performs over different time frames, asset classes, or different market conditions, especially in black swan type events such as the 2008 global financial crisis.
Optimization
So, now we have coded a strategy that works and at this stage we want to maximize its performance while minimizing overfitting bias. To maximize performance we first need to select a good performance measure that captures risk and reward elements, as well as consistency. Overfitting bias occurs when strategy is too closely based on past data; such a strategy will give off the illusion of high performance but since the future never completely resembles the past it may actually fail.
Live Execution
We are now ready to begin the live testing stage in the live market to verify that the strategy performance is similar to that experienced in the testing stage.
Portfolio
Finally, we implement the strategy to the portfolio manager which ensure the market behavior that the strategy was designed for still exists by continual monitoring.
Benefits of algorithmic trading
Trades executed at the best possible prices
Instant and accurate trade order placement (thereby high chances of execution at desired levels)
Trades timed correctly and instantly, to avoid significant price changes
Reduced transaction costs
Simultaneous automated checks on multiple market conditions
Reduced risk of manual errors in placing the trades
Algorithm backtested, based on available historical and real time data
Reduced possibility of mistakes by human traders based on emotional and psychological factors
Use our expertise in algorithmic solutions, we make trading simple and ensure that your trading run like clockwork.
Contact us today for an algorithmic strategy subscription
Risk Warning
Trading with the products and services of the Dream Projects may, even if made in accordance with a Recommendation, result in losses as well as profits.