The future of stock investment lies in the trading tool SMART TRADE that uses Python.

Have you ever heard of a stock trading tool called SMART TRADE?

Because it has been covered many times in the Nikkei, I think there are investors who may be familiar with it, but in short it is a company that provides "QuantX," a trading tool that automatically executes stock trades using the Python programming language, and QuantX Store, a platform for buying and selling trading strategy algorithms that run on QuantX.

The other day I actually operated QuantX to screen Japanese stocks and conduct backtests, so today I would like to share how that looked.

The image below shows the SMART TRADE site. From here you can access QuantX.

　QuantX is correctly called QuantX Factory, and it is a cloud service that provides a Python-based algorithm development environment.

　Python is said to be easy to understand and can be written with fewer lines of code, and many software engineers actually use it in their work.

　According to Tomoyuki Uchida, the President and CEO of SMART TRADE, recently, due to coverage of the so-called “20 million yen problem,” twenty-something software engineers who realized that salary income alone from corporate jobs would not secure their future have begun turning to investments and have joined the company's seminars in large numbers.

In the seminars, sample algorithms were provided inside QuantX Factory, and stock screening using moving averages was conducted.

　If you have some experience with Python and knowledge of technical analysis in trading, you can quickly create trading strategy algorithms.

Even if you are new to programming, you should be able to develop after learning the sample algorithms.

Once you have completed creating the algorithm, click "Test" to specify a period and run a backtest.

Historical data for ten years of Japanese stock listings is stored, and backtesting is performed using that data.

This time we ran backtests for about two years, and they completed in a few seconds.



As these are sample algorithms, the backtest results aren't necessarily outstanding, but according to President Uchida, there are already many high-quality trading-strategy algorithms for REITs and indices listed, and institutional investors are negotiating to acquire excellent trading-strategy algorithms.

Furthermore, as Python's AI-powered features are used in trading-strategy algorithms, it is expected that in the near future, manual investors will be rapidly replaced by investors who execute automated trades on QuantX, or will adopt a mix of manual and QuantX automated trading.

Report by Hayakawa