Building Automated Trading Strategies October 2018 | Page 6

combine
computational
statistics,
mathematical
optimization,
pattern
recognition, predictive analytics and artificial intelligence. On the other side,
there is a rapidly increasing amount of granular data, often referred to as Big
Data.
Retail traders apply automated strategies based on Expert Advisors (EAs)
running on four trading platforms: MetaTrader-4, MetaTrader-5, TradeStation,
and NinjaTrader. These EAs can analyze the market 24/7 and create trading
signals based mainly on technical analysis. Their algorithms can spot trading
opportunities based on price movements and their products (volatility, strong
trends, reversals, etc.). For risk management and position sizing, these EAs
incorporate basic money management techniques.
This eBook includes general information and educational resources for
explaining the modern use of automated trading, plus some practical
information and advice on how to create a proprietary automated trading
system. The optimization of a trading strategy through sophisticated
backtesting and walk-through steps is maybe the most difficult part of
strategy building. The danger of over-optimization always exists and requires
the implementation of methods based on randomness (Monte Carlo, etc.).
This eBook contains information on how to successfully backtest and optimize
automated strategies using advanced commercial software.
George M. Protonotarios, Athens
Financial Analyst - M.Sc “Int. Banking & Finance” Salford, UK
Linkedin: » https://www.linkedin.com/in/qexpert/
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