How Does It Work ?

How Does It Work ? (TradeProphet under the hood)

TradeProphet is a stock rating engine ,running an asset (stock,bond,ETF,...) trough a rigorous filter chain in order to detect previous profitable price patterns.
Once a pattern is recognized, the system alerts the user about the profitable pattern as they are about to fire once again.
The system looks for a number of different filters based on fundamental,quantitative and technical thresholds issuing four types of alerts:
  • Long - Open a long position
  • Short - Open a short position
  • Close Long - Close a long position
  • Close Short - Close a short position
The final report of a normal rating cycle, may look like the example below:

Ticker Position Profit/Loss Ratio Max. Draw Down Sharpe Std. Deviation Alpha Beta Order Date
BWLD Close Long 9.52 12.66% 14.16 0.16 47.13% -8.69 01/05/2014
IMAX Close Long 6.43 17.84% 13.17 0.23 65.20% 36.95 01/05/2014
LOCK Long 8.24 2.47% 10.89 0.17 36.90% -8.55 01/05/2014
OLED Close Long 6.87 15.64% 15.74 0.14 43.61% 9.66 01/05/2014
PEGA Long 7.02 10.83% 17.47 0.11 35.67% 2.05 01/05/2014
SAVE Long 7.33 11.56% 11.40 0.14 30.49% 0.22 01/05/2014
XRS Long 5.45 4.92% 8.04 0.21 31.96% -1.03 01/05/2014
TradeProphet Final Report

Ticker - The symbol generating the alert.
Position - The recommended position to open,with the following ratings:

  • Profit/Loss Ratio - the ratio between the profit ,for the specific alert, and the loss ,for the same specific alert.The higher the better.
  • Max. Draw Down - The maximum lose ,ever incurred,for the specific alert.
  • Sharpe - The sharpe ratio for the specific alert.
  • Std. Deviation - The standard deviation for the specific alert.
  • Order Date - The date the alert was fired.
  • Beta - The Beta calculated for the specific alert.
  • Alpha - The Beta calculated for the specific alert.

Happy Trading,
The TradeProphet team.


No comments:

Post a Comment

Post a Comment