Intro t oTrading Systems Toturial

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Luis Fernando Molina committed 2021-01-09 09:47:07 +01:00
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{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 1,
"type": "Tutorial - Intro to Trading Systems",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "Trading systems are the heart and soul of systematic trading, as they concentrate the biggest chunk of trading intelligence."
},
"paragraphs": [
{
"style": "Text",
"text": "The rest of the infrastructure built into Superalgos—data mining and visualization, the trading bot and trading engine, the visual strategy designer and debugger—all have significant equity in the intelligence pie, but it's fair to argue that were developed to support the design, testing, and deployment of trading systems!"
},
{
"style": "Callout",
"text": "This first tutorial explains how Superalgos views and handles a Trading System. The rest of the tutorials in the series teach you how to build them!"
}
]
}
@@ -0,0 +1,26 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 2,
"type": "Tutorial Topic - Frame It Flexibly!",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "A Trading System governs trading strategies, and provides a flexible—but structured— framework to build them."
},
"paragraphs": [
{
"style": "Callout",
"text": "Please, read this page to get up to speed with how trading systems work!"
},
{
"style": "Success",
"text": "There is no substitute for knowledge, so you will need to do some reading before I get your hands dirty with good ol' trading logic!"
},
{
"style": "Warning",
"text": "Skipping the reading may result in permanent neurological impairment. Your call!"
}
]
}
@@ -0,0 +1,34 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 3,
"type": "Tutorial Step - Points to Take Home...",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "There are some key learnings in the previous reading: multiple strategies, single positions, and precedence."
},
"paragraphs": [
{
"style": "Text",
"text": "Let's take some mental notes for what comes next:"
},
{
"style": "List",
"text": "Multiple strategies may coexist within a trading system—as many as you wish."
},
{
"style": "List",
"text": "One active strategy with one open position at any given moment is allowed only."
},
{
"style": "List",
"text": "Precedence is given by the order in which strategies are defined around the Trading System node. You may change the order, of course!"
},
{
"style": "Note",
"text": "You are probably asking why? Do these rules sound arbitrary? They are, for good reason!"
}
]
}
@@ -0,0 +1,26 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 4,
"type": "Tutorial Step - But... But... Why?",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "Why would I want to have multiple strategies within a trading system, when only one of them may trade at any point?"
},
"paragraphs": [
{
"style": "Text",
"text": "Before answering the burning question, let's take a look at a couple of examples. Take a look at the two strategies within the Weak-hands Buster (WHB v2) trading system!"
},
{
"style": "Callout",
"text": "Explore the definitions of the Trigger On Event on the Trigger Stage and see if you notice the difference between the two."
},
{
"style": "Success",
"text": "There's a hint in the name of each strategy!"
}
]
}
@@ -0,0 +1,22 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 5,
"type": "Tutorial Step - Steep Vs. Extreme",
"definition": {
"icon": {
"project": "Superalgos",
"name": "condition"
},
"text": "Did you find the difference? Don't worry if you didn't! There are lots of conditions! I'll give you another hint!"
},
"paragraphs": [
{
"style": "Callout",
"text": "Look again and notice that the first seven conditions of the Trigger On Event are the same on both strategies! The remaining conditions are different, though!"
},
{
"style": "Success",
"text": "You may drag the Trigger On Event of a strategy and pin it closer to the event of the other strategy for easier comparison!"
}
]
}
@@ -0,0 +1,22 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 6,
"type": "Tutorial Step - A Particular Case...",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-strategy"
},
"text": "Both strategies are virtually the same in that they share the same base rules for triggering... with minor differences..."
},
"paragraphs": [
{
"style": "Text",
"text": "Beyond the seven conditions in common, the Steep strategy has one additional Condition while the Xtreme strategy has three. We won't analyze those differences one by one, although you may if you wish! Let's instead reveal the underlying concept behind the differences:"
},
{
"style": "Callout",
"text": "Within the market Situation defined by the first seven conditions, the Steep strategy deals with a certain type of price action—price falling on a steep curve—while the Xtreme strategy deals with price falling on an extremely steep curve!"
}
]
}
@@ -0,0 +1,22 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 7,
"type": "Tutorial Step - Another Example?",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "Let's take a look at another example! This is BB Top Bounce, a Trading System based on the bounce off the upper Bollinger Band trading idea."
},
"paragraphs": [
{
"style": "Callout",
"text": "Expand the trading system node... Let's see what it may teach us!"
},
{
"style": "Note",
"text": "I told you! You may have as many strategies as you wish under the same trading system! Well... there your are!"
}
]
}
@@ -0,0 +1,26 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 8,
"type": "Tutorial Step - At The Count of Three!",
"definition": {
"icon": {
"project": "Superalgos",
"name": "condition"
},
"text": "BB Top Bounce features an interesting approach: it defines the trading idea with three simple conditions."
},
"paragraphs": [
{
"style": "Text",
"text": "You are looking at the Trigger On Event of the first strategy. Notice the first three conditions defined..."
},
{
"style": "Callout",
"text": "Now go and look at the trigger on event of any of the other strategies... What do you see?"
},
{
"style": "Text",
"text": "Eaxctly! All strategies feature the same first three conditions on the trigger on event. This shows that all strategies are based on the same trading idea. Now... how are they different?"
}
]
}
@@ -0,0 +1,26 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 9,
"type": "Tutorial Step - Time Frame Analysys",
"definition": {
"icon": {
"project": "Superalgos",
"name": "time-frame"
},
"text": "Each strategy specializes in specific market conditions by analyzing the state of the market on different time frames!"
},
"paragraphs": [
{
"style": "Callout",
"text": "Take a look at the name of each strategy... 3H Down, 2H Down, 4H Up..."
},
{
"style": "Text",
"text": "If you study the conditions that define the trigger on event, you will notice that 3H Down referes to the fact that the particular strategy is triggered when the 3-hour time frame is in a downwtrend."
},
{
"style": "Note",
"text": "Each of the strategies speciallizes on a certain time frame and trend!"
}
]
}
@@ -0,0 +1,22 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 10,
"type": "Tutorial Step - Unpacking These Lessons",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "We've covered two examples of trading systems featuring multiple strategies... what can we learn from them?"
},
"paragraphs": [
{
"style": "Text",
"text": "In the case of Weak-hands Buster, each strategy represents a particular case of the same trading idea. In the case of BB Top Bounce, each strategy specializes in specific market conditions."
},
{
"style": "Callout",
"text": "In the next few steps, we will unpack the implications of using multiple strategies within the same trading system and—finally—answer the burning question: why would we want to use such a setup?"
}
]
}
@@ -0,0 +1,26 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 11,
"type": "Tutorial Step - Granularity!",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "I mentioned the concept of granularity during the Welcome tutorial... remember?"
},
"paragraphs": [
{
"style": "Text",
"text": "Granularity is a device the helps in handling complexity. Instead of letting strategies grow into a complex web of rules and definitions, it is always preferable to split complex logic in pieces and deal with smaller units."
},
{
"style": "Callout",
"text": "Splitting complex logic into multiple strategies helps in keeping strategies simple and understandable. It makes strategies easier to debug and to maintain!"
},
{
"style": "Text",
"text": "Whenever you can, keep it simple!"
}
]
}
@@ -0,0 +1,26 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 12,
"type": "Tutorial Step - Hyper Specialization!",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "Specialization is a very interesting concept that may lead to designing more efficient trading systems!"
},
"paragraphs": [
{
"style": "Text",
"text": "It is a well-known fact that most strategies perform better on certain market conditions."
},
{
"style": "Callout",
"text": "Like with BB Top Bounce, a single trading system may feature multiple strategies, each specializing in specific trends, volatility ranges, or any other market parameter."
},
{
"style": "Success",
"text": "Instead of designing a strategy to evaluate a range of market conditions, keep them focused!"
}
]
}
@@ -0,0 +1,26 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 13,
"type": "Tutorial Step - Fine-Grain Management!",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "When complex trading logic is split into multiple strategies, you gain the opportunity to manage the resulting trades differently!"
},
"paragraphs": [
{
"style": "Text",
"text": "We haven't yet got into how strategies are defined, but you do know that Superalgos allows managing the take profit and stop loss targets..."
},
{
"style": "Callout",
"text": "Each strategy in a trading system may have its own logic for managing positions!"
},
{
"style": "Text",
"text": "If you handle multiple variations of the same logic for example, to take a position, then you will likely need to handle multiple variations for managing the position. It is easier and cleaner to do both on separate strategies."
}
]
}
@@ -0,0 +1,26 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 14,
"type": "Tutorial Step - Going Long & Short",
"definition": {
"icon": {
"project": "Superalgos",
"name": "trading-system"
},
"text": "We covered the three main reasons why it's a good idea to split complex logic into more than one strategy..."
},
"paragraphs": [
{
"style": "Text",
"text": "We also covered a couple of examples of trading systems doing just that. There is another example that comes to mind:"
},
{
"style": "List",
"text": "Going long and short: designing a strategy that goes both long and short is probably not a good idea. Split the logic and build one strategy for going long and another for going short!"
},
{
"style": "Success",
"text": "Remember the KISS principle!"
}
]
}
@@ -0,0 +1,22 @@
{
"tutorial": "1. Intro to Trading Systems",
"pageNumber": 15,
"type": "Tutorial Step - Ready For The Next One?",
"definition": {
"icon": {
"project": "Superalgos",
"name": "tutorial"
},
"text": "Congratulations! You now know as much about trading systems as I do! Coming next, Defining a Trading Idea."
},
"paragraphs": [
{
"style": "Callout",
"text": "The next tutorial in the series is about framing trading ideas into a formal hypothesis so that the trading idea may be tested. Testing a trading idea is the first step in the process of building a Trading Strategy!"
},
{
"style": "Success",
"text": "Click Next to finish this tutorial, and select Play in the next one when you are ready!"
}
]
}