| How does Prosignal create these powerful products? |
Professional traders have been successfully
trading the stock market for 10 years or more. They usually
use a professional
trading platform which will allow them to create and back
test their trading rules or strategies over a number of years
and in different market cycles.
A trading system
or strategy, as we call it, consists of these following components:
- Buy, exit long, sell, and exit short trading executions.
- Conditions
by which a trade will be executed.
- Stops, which can be set to limit losses or take profit.
- Input values which allow the strategy to be normalized
to the underlying data.
- Properties which are used to adjust the amount of
shares traded.
The code to a very simple strategy might look something like this....
|
{ *******************************************************************
Study : sMACD
Purpose : Moving Avg Convergence Divergence
Last Edit : DEC-06-2004
Provided By: Prosignal.com (c) Copyright 2004
********************************************************************}
Input: Price(Close), FastMA(12),SlowMA(26),MacdMA(9);
vars: MACD1(0), XMACD1(0);
MACD1 = macd(Close, FastMA, SlowMA);
XMACD1 = XAverage(MACD1, MacdMA);
If MACD1[1] < XMACD1[1] and MACD1 > XMACD1
Then Buy on Close;
If MACD1[1] > XMACD1[1] and MACD1 < XMACD1 Then Sell
on Close;
|
| If you notice there are inputs that allow the
developer to adjust the parameters of the strategy. There are
also variables (MACD and XMACD) which are used to simplify
the code. You will also notice that there are two functions
(macd
and Xaverage). These functions are user-defined functions and
must be written separately before the strategy can be compiled. |
| Once the strategy is submitted, it is then compiled
into an executable program. If there are no errors, the strategy
is tested. If the testing proves that the strategy is viable,
the developer is now ready to create a product. |
| The developer uses this strategy and then selects
a security, Microsoft for example. He then adjusts some
of the properties and inputs to fit the nature of the data,
and them finally he confirms the product and checks to see
if the system meets the criteria for a profitable strategy. |
| Our editors review the product and decide if the strategy is
robust enough to be profitable in actual trading conditions. If the product
passes, then it will be released for subscription. |
| The price of the subscription is set by our suppliers,
as in any typical retail product setting.
Keep in mind that they must create the best systems
they can since each supplier is competing with other suppliers
with similar products. Each suppliers trading strategy is confidential
information and will not be released to the public or to other
suppliers. |
If you are curious as to what the end results
look like, select one of the following categories to find
out.
You will notice that there are three reports, Charts, Summary,
and Trades. A fourth report called Conditions is
sometimes available, depending on whether the developer chooses
to create
the report. |
| You as a subscriber will only need to select the
product that meets your investment goals. Keep in mind that
no strategy will be right 100% of the time
(see our disclaimer). These strategies
provide a method of investing based on mathematical rules that
have gone through some exhaustive testing. The best way to
use these products is to select one that fits your goals and
follow the outcome on a consistent basis. |
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