BuildAlpha

This is a simple technique that can increase returns per dollar traded. This blog will show an example of a simple strategy to demonstrate the advantages of Rebalance strategies. The base strategy is quite simple and uses all built-in signals inside of BuildAlpha : Entries: RSI2 crosses above 15 and 20 Vix term structure is positive (front two months, contango) Exit: RSI2 crosses below 95 $1,000 stop loss (all positions based on $10,000 at time of entry) The way the Rebalance strategy/filter works is that we first set the rebalance period. Choices are: daily, weekly, monthly, quarterly, and annually. We will use monthly in this example. We then set the ranking method. Choices are: Profit Factor, Winning Percentage, Average Return, Volatility, Sharpe Ratio, Range Location, Rate of Change, Momentum, and Fip Score (% return * [neg% days – %pos days]). We will use winning percentage in this example. At the end of each rebalance period, we r

New features and upgrades to the Build Alpha software. You can now create multi timeframe strategies. That is, trade the 30 minute chart with confirmation from the daily chart for example. You can also create strategies that are forced to exit end of day and do not take any overnight risk.

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 wi

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 m

In this week’s Free Friday strategy (#9) I display a strategy built using inter-market signals. Inter-market signals/analysis is the ability to generate trading signals and filters for a primary market based on what another market may be doing. For example, you may only want to buy the stock market when gold is trading lower or when bonds are below their 200 simple moving average. Build Alpha now let’s you test these exact sort of scenarios and build strategies taking into account up to 3 markets (plus Vix). This specific strategy was built for SPY (S&P500 ETF) but takes into account Gold (GLD ETF) and holds for a maximum of 2 days. There are no other exit rules or sophisticated risk management; all trades assume only a 100 share position for testing purposes. The entry: 1. $SPY’s 2-period RSI <= 90 2. Gold’s 50 period simple moving average is greater than Gold’s 200 period simple moving average 3. Gold closed below both its 10 peri

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 in vesting 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