Our algo workflow documents the series of steps we follow to bring our algo to life. We follow this sequentially to ensure the highest probability of success
Our algo workflow is designed to ensure the highest probability of success. There are never any guarantees in trading unfortunately but by following a workflow we can ensure consistency in the approach. From start to finish, this can take weeks / months to have a full working algo.
Also note, a working algo on one broker may not work on another due to data differences, commission charges, spreads, execution speeds. It is therefore important to test algos with your own brokers.
The first step for the algo is the idea or the inception phase.
This is deciding how you are going to go about creating your algo.
For our algos, we plug in variables, indicators and historical data for our machine learning engine to 'find' suitable algos.
Knowing our variables and using high quality historical data, our machine learning engine searches for algos which can return a profit.
We use powerful computers to generate these algos and run them through multiple filters, we only take those which pass the test which is less than 1%.
The first output that we can expect to see is the backtest which gives us our first indication that the algo has potential.
Most of our algos are released to this step for you to continue the workflow.
Forward testing, Demo testing or paper testing is executing the trading system on the trading platform but on a demo account - no real money. We will demo test a selection of our algos for a few weeks to months before moving to the next step.
Live testing is running the algo in a live account but with low monetary value ($1000 to $5000) and smallest trade sizes to minimise loss in case the algo doesn't work out. We run the algo also for a few weeks to months to test performance against backtests.
After we are satisfied that the Live Testing results are performing as expecting, we can go live. This step is simply adding the algo to your portfolio to trade the size you need it to trade on the account you specify.