Strategy Back-Testing and Optimization
TradeStation's robust platform enables traders to develop custom indicators and design, test and optimize trading strategies. Non-programmers can select from dozens of technical indicators and build their own strategies using pre-built strategy components and test the ideas on an extensive database of historical data. Strategy performance reports provide detailed analysis including metrics such as Maximum Drawdown and Average Trade Net Profit, as well as equity curves and trade lists. The Walk-forward optimizer provides an easy-to-read pass/fail report f to help traders decide if a strategy is ready to be applied to a live market.
SEE: Stock-Picking Strategies: Introduction
Figure 27 - Walk-forward optimizer
TradeStation's Portfolio Maestro is a sophisticated tool that enables portfolio-level performance reporting, risk assessment and optimization for practically any combination of symbols and strategies. Performance and optimization reports, including advanced analytics like Monte Carlo Analysis, Correlation Analysis, Walk-Forward Analysis and Genetic Optimizations provide a complete analysis of the portfolio from multiple perspectives. Portfolio Maestro, which is closely integrated with the TradeStation platform, is available as a monthly subscription to TradeStation version 9.1 and higher.
Market Scanning and Pattern Recognition Tools
TradeStation offers several tools to assist traders with market scanning and pattern recognition. RadarScreen allows traders to dynamically rank and sort hundreds of symbols in real-time, providing customizable market tracking, scanning and advanced pattern-recognition capabilities. Hot Lists show traders which symbols are making unusual market moves, such as opening gaps, unusually high volatility and approaching/breaking 52-week highs.
Figure 28 - Radar Screen
TradeStation's Scanner allows traders to scan all stocks and ETFs in a matter of seconds using more than 500 fundamental fields, options-related data and over 160 built-in technical analysis indicators. Markets can be scanned over multiple timeframes simultaneously, and scans can be customized using EasyLanguage. The OptionStation Search feature allows traders to rank positions using multiple criteria and scan for options and positions that complement the trader's market outlook or strategy.
SEE: Create Your Own Trading Strategies
TradeStation is a robust platform designed and developed for active and institutional traders. From the TradeStation platform, traders can find trading opportunities, analyze the markets, execute and monitor trades. In addition, TradeStation's strategy develop tools, including back-testing, multi-variable optimization and the Walk-Forward Optimizer allow traders to develop and accurately test trading systems before putting them in a live market.
Programmers can utilize TradeStation's proprietary EasyLanguage programming language to develop custom indicators, studies and strategies that can be used to test and automate trading systems. TradeStation's Web site has a list of EasyLanguage Specialists and Add-On Developers with whom non-programmers can work to develop ideas into testable and tradable code.
TradeStation is a sophisticated and feature-rich platform that takes time to master. The TradeStation help guide can be accessed by selecting Help in the main menu > TradeStation Platform Help. In addition, TradeStation offers a user Support Forum (select Help from the main menu > Support Forums) where traders can post and respond to questions, as well as a series of multimedia tutorials on its website.
TradingTradeStation uses its experience in developing early groundbreaking trading software to create and enhance its own online trading platform.
InvestingLearn about the many tools Tradestation offers to active investors.
InvestingEach of these two online brokerage firms offers a package of benefits, features and services that meets a distinct type of investor's needs.
TradingUnfortunately, there is no perfect investment strategy that will guarantee success, but you can find the indicators and strategies that will work best for your position.
TradingThese are among the most sophisticated brokers in the industry in terms of investment offerings, market access and technology.