Developing and testing stock trading strategies are an important key elements being successful trader. Technical traders use charting tool to recognize recurring stock movement patterns and trends. By pinpointing buy and sell trading signals, they formulate trading strategies.

To trade mechanically, traders must follow the signal produced by a formula rather than buying and selling with their emotion. Building and testing stock trading strategies plays an important role in discovering a good mechanical trading system. It allow users to test the profitability of a formula in various securities based on historical data. Such a formula can include rules for buying, selling and exiting a trade. The test result are a series of transactions executed based on the rules, statistical data such as returns, percentage of successful trade and etc. Base on the result, traders can continue to improve their stock trading strategies by removing under performing rules and adding more effective ones.

Trade Method software comes with powerful Strategy Manager that allow traders to easily build and execute simple and complex customized stock trading strategies. Traders can also group multiple strategies to formulate the ultimate trading formula.

Simple Stock Strategy Builder

A simple strategy can be buying when the 50 days Moving Average crosses above the 200 days Moving Average and selling when 200 days crosses above 50. However, testing this simple idea is time consuming using traditional methods. Using Trade Method software, any user can easily build and test their trading strategies. All simple strategies are categorized into four types; Buy, Sell, Exit Long, Exit Short. Once the strategy is built, it can be tested on multiple stocks. Trade Methods comes with 11 predefined stock trading strategies including Big Trend, Direction Movement, Buy and Hold, Fractal, GANN, MACD Cross, Maximum Profit, SMA5_20, SMA50, Stochastic, Trend Finder. The displayed example is ran using the predefined Big Trend simple stock trading strategy.

Customized Stock Strategy Builder

Trade Method seamlessly integrates Microsoft .NET® language as its scripting engine to allow customization of Strategies. The integration offers users more flexibility to design their strategies than the traditional trading languages. Customized Strategies can be created through C# scripting or VB.NET scripting.

Grouping Strategies

Both simple strategies and customized strategies can be combined as a group strategy. During the grouping process, users can apply the AND, OR operator to the strategies. If two strategies are OR together, only one strategy need to fire a signal. If they are AND together, both strategies need to fire a signal in order for the final result to get a signal. These are very powerful trading tool that allow users to filter out weak signals.

Executing Strategies

Trade Method makes running strategies a snap. Once the user select a symbol, the user can select from a list of strategies and run it. Trade Method automatically generates a report summary and a detail trade history for the select strategy and security.

Dynamic Strategy

Trade Method 4.1 introduced a new feature call "Dynamic Strategy". Dynamic strategy further enhance the strategy building and execution experience for user. The user can now execute multiple strategies against a stock or security. This save users valuable time and they can easily compare the result of executing multiple trade strategies. The dynamic strategy summary report below shows the result of running security QQQQ.