Our Algorithmic
Development Process
01
Identify manual traders with strong track records of a minimum of 24 weeks through turbulent market conditions
02
Interview these traders to discuss their history and a possible collaboration
03
Identify key patterns in their trading style to determine whether it’s possibly to automate their key strategies
04
Conduct a detailed interview with the trader and our development team to understand how much of their trading can be automated
05
Interview these traders to discuss their history and a possible collaboration
06
Once the algorithm is developed, it is launched upon a demo server to see how it trades in historical market conditions
07
Depending upo the complexity of the algorithm and/or the turbulence of the historical markets we’ll backtest the algorithm through various micro events such as a drop in oil price because of international tensions to macro events such as the global pandemic
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08
We stress test the algorithm intensively over a 5-20 year period through different scenarios
09
Ideally the algorithm doesn’t ‘blow up’, and lose the balance in the demo account
10
As the algorithm trades we hand it back to the trader, as well as select individuals in our circle to refine the algorithm based upon its performance
11
These recommendations and then centralised, approved by the initial trader and us, and then passed back to the development team for further fine tuning
12
Once this process is complete, we do further backtesting to help give us an indication of how an algorithm will perform in future/current market conditions
13
If the algo has reached this stage (most don’t), we open up the algorithm onto the live markets with some of our own funds (up to £10,000) for a 4-8 week period
14
We name the algorithm in preparation for a client launch
15
All being well (again few algo’s make it), we open up the algorithm to a small proportion of our clients for 4-8 week period at the £10-30,000 range
16
If again the algorithm performs well, we identify which clients this algorithm is most suited for and roll out the algorithm across these client accounts
17
This whole process is a 6 month period through which we’ll start with between 10-25 algorithms and typically end up with 1-2 that ultimately are usable
Frequently Asked Questions
Our algorithmic development process refers to the steps and methods used to create and improve algorithms, which are sets of instructions used to solve specific problems or accomplish certain tasks.
The problem that the algorithm will solve is typically determined by identifying a specific task or problem that the algorithm is intended to address. This could be through research, customer feedback, or identifying a gap in existing solutions.
We improve the algorithm after it has been deployed by using user feedback, monitoring its performance, and analyzing the results. The algorithm can be updated and re-tested to improve its performance.
