Strategy Quant: create your own Grail.

Every trader on the Forex market dreams to create their own unique trading strategy or an Expert Adviser. Forex trading is often compared with a game of chess. The size of the chess field is quite small and the number of chess pieces is limited – but the number of different combinations of moves is close to infinity. It is similar with trading on the forex market. A backtest of a strategy based on two indicators for the period of 2-3 years by hand will take a few days. It will be faster and more accurate to let your computer to do the job. But what if the trader is not very good at programming in the MQL4 language?

Strategy Quant is a program that automatically generates new unique trading strategies for forex, stocks or CFDs.  Using Strategy Quant, you can find profitable trading strategies for virtually any market, any timeframe and any chart type. No programming skills or trading knowledge is required. You no longer need to pay a programmer to implement your trading ideas.

With StrategyQuant you can:

  • Build an unlimited number of unique trading strategies
  • Develop strategies for virtually any market or timeframe
  • Save your strategies as a MetaTrader Expert Advisor with full source code!
  • Eliminate the manual labor previously required when developing a trading strategy
  • Find new trading strategies that are not only unique, but also non-obvious
  • Reduce the time required to build a strategy from weeks and months to minutes!
  • Improve your existing strategies

 

How does it work?

StrategyQuant is a program, it does not have the brain or the experience of a trader, and it does not know how to create a profitable strategy. What it does is that it randomly combines the available building blocks (indicators, prices, etc.) to create new trading rules. The resulting strategy is then tested on a history data to see if it is profitable.

Random generation is the foundation of StrategyQuant. Strategies generated this way can be further improved using Genetic evolution.

Figuratively speaking, making all possible cross breedings in a population of flies and selecting from the resulting progeny the largest specimen, in the n-th generation you are likely to get a mega-fly or, may be, an elephant with wings J.

It begins with setting the selection rules – these can be standard indicators (such as RSI, Momentum, CCI, Stochastic, etc.), candlestick patterns (“Hammer”, “Shooting Star”, “Doji”, etc.) , time periods (hours, days, weeks), or custom indicators that can be loaded into the program if they are written in mql4. Next, we select the currency pair, working time period (from M1 to W1), the filter selection of successful strategies and much more, and then start the generator strategies. The quality and performance of the strategy generator are similar to the tester of MetaTrader 4: the lower the accuracy of the result the faster the generation. For example, if testing is performed on the working timeframe only, new strategies will be generated and checked every 20-30 sec., but the accuracy of the results will similar to that of the backtesting regime “Control points” in the MetaTrader 4, i.e., fast but unreliable. However, if you select the regime “1 Minute data”, which is similar to the regime “Every tick” in the MetaTrader 4, the strategy generation will take much longer, but its reliability will increase many times over. The most reliable results are obtained with the mode “Every tick”, but in this case you need patience. But who ever said that finding the Grail is fast and easy?

As a result of the creation and selection process, the “Bank strategies” of the program will only include strategies that have passed through the selection filter specified by the user (based on profit-to-loss ratio, number of trades, maximal drawdown, etc.). From the “Bank strategies” we move our strategies to the section “Retest strategies”, where we can define a new set of selection rules and check them on historical data. The results of this selection are then placed in the section “Improve strategies”, in which the analyzer finds the optimal parameters for the trading. And finally, we have in our hands a “miracle of a strategy,” and may be not just one but several of them. And … we can start the whole process all over again, moving our resulting strategy to the input of the strategy generator and adding new parameters, filters, etc. The Grail cannot be spoiled by an improvement!

It should be noted that at any point of the strategy generation and optimization we can obtain a source code of the resulting strategy in mql4 format. It is done just by a mouse click. The resulting mql4 file can be used for a real trading in MetaTrader 4 platform without any additions or modifications.

It would take a long time to read about all the options for creating and selecting strategies available in the program StrategyQuant. But, as the saying goes, the proof of the pudding is in the eating: try it for yourself. The free trial version of StrategyQuant for a period of 2 weeks and without any functional limitations can be downloaded from the website http://www.strategyquant.com

 

To demonstrate how it works, we have generated an example for automated trading strategies using StrategyQuant and monitor it on a demo account with Alpari.

Let us now explain the process of creating an Expert Adviser for the MetaTrader 4 terminal, by creating an example of a simple “toy” strategy.

First of all, we need a trading idea. Let’s assume that we have read in a clever book about trading on the Forex market that a signal for the opening of the position may be the intersection of two Moving Averages – a slow and a fast one. Okay, we press the button in the program StrategyQuant «Create Strategy» and enter the buy rule “If the 7 SMA crosses above the 21 SMA, then open a market order to buy with a stop-loss of 30 points and a take-profit of 60 points”, for the sell order, the opposite. Now we press the button «Test validity» to make sure that we have done everything correctly and then click «Save changes».

p_1

The simplest possible Expert advisor for trading in the Forex market is ready. We switch back to the section “Retest strategy” and see it in the listing under the name “Created Strategy 788”. We decide that we will trade the AUDUSD pair on the timeframe H1. Ok, now we start the backtest by setting the tester testing period from January 2009 to October 2013, the initial deposit to 10000$ and lot to 0.1, hold our breath ….  The result is a loss of 3000$. Not a big surprise.

p_2

But let us not despair. We switch to the section “Improve Strategy” and add several standard indicators (just the first thing that comes to my mind) – Heiken Ashi, RSI, Momentum, MACD, Stochastic, Bollinger Bands, Parabolic SAR. We also select the checkbox specifying that we agree that the program can change the market orders to the pending orders, add a trailing stop and an option for reversing positions.

p_3

Now we press start and after a while (about 20 minutes) first results of the strategies generation begin to appear. Before long we have a list of different strategies, all of which are different improvement of our original strategy.

p_4

After a couple of hours of running the strategy generator of StrategyQuant, we put it on pause and select the best result obtained so far. Let us have a look which changes to our initial strategy have been introduced by StrategyQuant.

p_5

Hmm! There are quite a lot of changes! The market orders have been replaced by limit orders and a number of additional filters were added from the set of indicators that we have allowed. And StrategyQuant assures us that this will work?!? Let us check. We save this strategy in the format mql4.

p_6

We compile our brand-new Expert Advisor and copy it into our MetaTrader 4 terminal, in which we have pre-stored the historical tick quotes for AUDUSD pair. Starting the backtest for the initial deposit 1000$ an initial risk of 3% per trade. Here is the backtesting result with 99% modelling quality:

audusd

Wow! I am impressed. Just in a couple of hours we have produced a fully functional Expert Advisor for MetaTrader 4, which shows meaningful result in a high-quality backtesting.

 

We have added the resulting Expert Advisor on the same demo account that the previous trial strategy generated ​​with StrategyQuant. Let us see how these forex robots perform in a forward test.

Both expert Advisors generated by StrategyQuant and their backtests can be downloaded free of charge from our website, look for the download link below.

If you decided to purchase a license pack StrategyQuant, you may take advantage of our discount program by purchasing this product via our website.

Coupon the good % discount on StrategyQuant Starter and StrategyQuant Professional (ARGO-JF6C-KLOI)

I hope that this article about creating a forex trading strategy in StrategyQuant was useful and interesting for you and that the program StrategyQuant will become an essential tool in your trading.

Dmitry Dmitriev.
 

Buy: StrategyQuant Starter

Buy: StrategyQuant Professional

And do not forget to type in the coupon number (ARGO-JF6C-KLOI)

Download two Experts Advisors generated with StrategyQuant
and their backtests.

 

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