Trading Trends with Build Alpha

Trading is basically buying and selling of things to capture a change in price. There are many types of trading activities which are there in the market. Due to the development in the technology, there are many softwares and tools made for the convenience of different trading activities. Among all trading activities, trading in stock market requires the utmost help. For this purpose, Build Alpha helps the trader the most. It is one of the leading softwares in the trading market which has done wonders with its expert skills.

With the changing trend of the market every now and then, the human expertise and knowledge is not efficient to analyze all the trends keeping in mind all the factors that affect the trend. This is how the human expert’s evaluation turns vague in front of the software analysis.

Trading software helps in trading and analyzes the movement of the various stocks, currencies and commodities worldwide. Many brokerage houses provide their clients with trading software to buy and sell different financial products like equities, commodities etc. on their own. Many brokerage houses are now itself indulging in the expert assistance of BuildAlpha tool.

This tool does not only provide expert assistance to the ones who have knowledge about the market, but it has proved to be very useful for the ones who are starting from scratch. It has proven to be the best tool for the one who have very little or no skills about trading in the stock market. It gives assistance from starting, if you are someone who is at the intermediate level in the trading world, the software guides you through each step of strategy development.

Build Alpha: Trading software can be easily downloaded on your laptop or desktop. Some of the important features of the trading software are discovery of edge, technical and fundamental analysis of the various stocks, commodities, foreign exchange and even cryptocurrencies. Money spent is an investment made on the software and it would be worth every penny.

It has better analysis skills and capabilities than many can do on their own and requires no programming. So if you are entering the stock market and want to invest your funds get yourself a proper tool to give yourself the best chance to succeed. Without guidance operating in the market is never a good idea. There are various patterns you need to know and it will guide you in finding the ones that can help you increase your chances of success.

Combining Trading Rules To Smooth Performance

The market is “overbought” or “oversold” are common phrases you will hear across the finance space. However, it is actually extremely rare for these conditions to be true.

Today, we’ll attempt to show how trading rules can provide a better picture of the market while enhancing trading performance.

BuildAlpha: First, let’s simply define overbought as a 14 period RSI of greater or equal to 70.00 and let’s simply define oversold as a 14 period RSI of less than or equal to 30.00.

Below is a chart showing the RSI of the S&P 500’s ETF (NYSEARCA:SPY) with the overbought and oversold levels plotted.

From January 2002 to May 2017 here are some stats:

  • Days overbought 214 out of 3,878 or only 5.5%
  • Days oversold 60 out of 3,878 or only 1.5%
  • Days in the middle roughly 3,604 out of 3,878 or 92.9%

Of course when these overbought or oversold conditions are true the markets do appear easier to trade as volatility often expands and it seems easier to skim some meat off the bone, if you will. However, many strategy developers and traders focus on these overbought and oversold conditions when in reality it is extremely difficult to be patient 92 to 98+% of the time.

A simple solution is to augment your trading with trading systems that do well in these “common” times or regular conditions. Let’s look at how SPY did during this 92% of the time period the market was not overbought or oversold. The test period covers January 2002 to September 2012 (as we will save Q4 2012 to present day as out of sample data for later testing).

Build Alpha: As you can see that trading in these 92% of the time when the market is neither overbought or oversold is extremely trendless and encompass some serious drawdowns; making life extremely difficult for traders.

Let’s add an 8 period moving average filter and see if we can smooth out performance (performance only based on 100 shares for testing/demonstration purposes).

As you can see the moving average filter makes a significant difference albeit not perfect. That is, trading when prices are below the 8 period moving average produced significantly greater performance than when price was above the 8 period moving average. This is counter-intuitive for sure.

BuildAlpha: The process of continuing to refine and add filter and rules to our trading “system” is part of the strategy development process. It can be long and arduous. To keep this post short and sweet let’s “accept” these two rules (1. RSI between 30 and 70 and 2. Price below 8 SMA) and go ahead and see how this system would have performed on the out of sample data from September 2012 to May 2017.

The strategy holds up quite well and we now have some simple rules to follow/guide our trading in the “doldrums” that occur 92% of the time.

The long and arduous process of refining and adding conditions can be greatly simplified with modern computing power and software. Build Alpha attempts to make this process simple and fast! Build Alpha is trading software designed to create trading strategies from thousands of inputs, filters, and signals for the research-oriented trader and investor – no programming required!

Originally Posted: https://www.seeitmarket.com/combining-trading-rules-to-smooth-performance-16927/

Build Alpha Providing efficiency in Trading

Trading is a phenomenon which is not a cake walk. One cannot become an expert in this field unless one has gained some experience and knowledge in it. You need to seek guidance in the initial stages of trading. For taking help you can either reach out to some expert in this field or find advanced trading software that comes with training. As the trading in securities markets is based on interpretation of the market forces which in a lot of sense depends upon the market forces so the human interpretation can lack at times in analyzing certain aspects of it.

This is where software like Build Alpha comes into play and can help regulate your operation. This is a software which helps us in making strategies, testing our ideas, and building our confidence to run automated strategies in real-time. This is one of the best trading softwares to date and serves the needs of traders. Anticipating the trend or mean reversion becomes much easier if you do it through build alpha software solution. The best part… no programming is needed!

Trading software is a computer program designed to help traders and investors to trade and analyze stocks, commodities, futures and various currencies in forex market. It also gives you access to the latest news that affects the price movements of stocks and their trends. There are different types of trading softwares for both beginners and experts. BuildAlpha is one such software which is helping the traders to achieve the success in trading regardless of their skill level. It allows you to stress test each and every strategy.

View in and out of sample test results with ease, has data included, and generates actionable trading code all from one command center. There are fund managers who study short and long term charts with the help of these softwares. There are softwares available to know technical and fundamental aspects of the stocks. Many stock brokers provide softwares to their clients to trade on their own. The main features of the software are order placement and proper analysis of stocks. These softwares are built by third party and licensed to online brokers.

The software gets new updates every week which makes it more unique and worthy than other softwares which are alike in the trading market. The new peculiarities that are coming out every now and then are amazing it seems like trading has become easy with the aid of this software. You will experience the difference after using the Build Alpha software. You will become a person who will start analyzing what is important. Get efficiency in trading markets with the expert analyst feature of this software, which helps you in analyzing trends more specifically.

Learn the Skill of Trading with Build Alpha

Trading in financial markets is a tedious job. An expert’s advice is always required to invest in capital markets for a new trader. Listen to all fund managers, their views of investing based on different market conditions. Always do lot of research and take guidance from experts before investing. A new trader must utilize a stop loss, avoid greed and do not trade with fear while investing.

Make a portfolio of strategies or shares from different sectors and maybe receive help from your broker. There are experts who provide market tips which enable beginners to make a wise decision, but on the other hand, you can take the help of this new trending software which is proving to be one of the best solutions in the market: Build Alpha.

Fresh investors always go for those stocks which have reasonable valuations or big growth potential. Different market analysts have their own investment strategies owing to the Bull and Bear phase of the market. There are many loop holes for the ones who are trading for the first time in the market. Investing successfully is basically an initial as well as ongoing journey to explore, learn and succeed in financial markets.

BuildAlpha

No one can individually know all the things in the market, but with the aid of artificial intelligence like BuildAlpha software one can climb the ladder of success. You will learn a lot of new things about trading; the software is an overall solution to lead you toward the right path in trading and investing.

Investment and trading are two different aspects of shares, commodities and forex trading. There is intraday trading which requires comprehensive knowledge of market movements and its trends, microstructure, infrastructure and transaction costs. These trends are easily anticipated by the software which a normal human is unable to understand even if he or she is trading in the market for a long-time.

It is one of the outstanding tools which can boost up the confidence of new as well as existing investors in the trading market.  Anticipating the trend becomes easy if you do it through Build Alpha software solution. Also, Build Alpha has a new Intraday Edge feature which can help improve daily investment strategies by finding which hours of the day they are most effective to reduce your exposure and holding time.

The software is a guiding tool for all the young aspirants who want to learn and grow in trading.  It is one of the outstanding tools which can boost up the confidence of new as well as existing investors in the trading market. It guides in making strategies which can be utilized on a real-time basis for assisting our theories in the market (or finding new ones). This is one of the highly recommended softwares who is new to the world of stock market. Take a look at how Build Alpha can help you today.