Big misconception when creating a strategy

Big Mistakes When Creating a Strategy

PowerEditor can create indicators, show-miss studies, paint bars, and strategies, but that’s not all. Everything created above besides strategies can be saved as a library. In other words, by writingMA you can have the moving average calculation read from the library, and by saving your own methods in a library you can simplify the writing... It would be easy to say this, but many people misunderstand that a Strategy equals a buy/sell point from technical analysis.

Technical analysis is indeed often valid as a probabilistic variable, but it is only a reference value. That doesn’t mean it should be discarded. What I want to convey this time is that a strategy is a “plan/approach,” not an automatic trading program. It’s something that should be obvious, but is often overlooked.

The tool born to describe buy/sell rules isEasyLaugnage. A rule is a rule, not a strategy. Simply put, describing this stock price at what value to buy a certain amount, and at what value to sell a certain amount, is program trading. How to express the condition “at this price” and how to express “how many units” becomes the strategy (also called a signal by some). Even someone like me who can’t wield a language can say, “I can write it,” for this reason. What’s important in creating a strategy is to make a simple and clear rule like “under what conditions what should happen,” but more crucial is to create exception handling such as “don’t do this under these conditions.” This is where SuperChart has led to limitations in expression and caused its decline in sales.

Writing program trading can be difficult, but anyone can conceive the rules. It has always been said that it’s just a matter of whether they can be expressed in formulas. The currentTradeStationis not a product for sale but a trading platform, so for users I think starting from “what rules do you want to create” is best. For example, if you can write, “Buy at market at the close on Monday, and sell at market at the close on Friday,” that would be the first step. If you just write that part, it would look like this.

If dayofweek(date)=1 and time = 1500 then buy at market

If dayofweek(date) = 5 and time=1500 then bell at market

(Next time, meeting legends from around the world)