Algorithmic Trading Tips 12.

CONTROL AND MONITOR YOUR PORTFOLIO BY RULE-BASED APPROACHES.

HOW TO CREATE A PORTFOLIO IN TRADESIGNAL, APPLY TRADING STRATEGIES & MONITOR ALL POSITIONS.

Controlling and monitoring of large portfolios can best be implemented by a rule-based approach. This ensures that the investment process is kept consistent and minimizes the time involved to get results. This issue provides you with valuable tips on the features of Tradesignal. For example: how to create your own portfolio, how to apply trading strategies to it and how to evaluate the results. The Position Manager and the convenient alarm function are presented too.

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How to create a portfolio.

To create a portfolio, open the selection window on the right and click on “symbol lists”. You will see a selection of different securities lists you can choose from. To open a whole list as a portfolio, just click on the right mouse button and select “Open in Portfolio”. Of course you can add further symbols into the portfolio – either by using the input field above or by selecting securities from existing symbol lists.

How to apply a trading strategy on the portfolio.

To apply one or even several trading strategies on the portfolio let`s return to the selection window and click on „Strategies“. Now you can see both preinstalled and your own trading strategies. As an example, we will use the strategy “Commodities Control” created by our colleagues from strategy development and apply it into the portfolio by dragging and dropping. The result is shown in Figure 1. In addition to some new columns in the table – for example position size, profit factor and the respective net profit – the graphical profile of the equity curve of the portfolio is shown. In this way, you can find out immediately how successful the chosen trading strategy worked in the past and without any effort.

FIG. 1: PORTFOLIO WITH TRADING STRATEGY “COMMODITIES CONTROL”.

If a trading strategy is added to the portfolio, the portfolio manager immediately receives the corresponding information in the table as well as an equity curve that shows at a glance how successfully this strategy worked in the past. The conversion of currencies and units of measurement for the entire portfolio is possible too. In addition to the analysis of the portfolio equity curve, you can examine the quality of the trading strategy on an individual security basis. To do this, select a security from the portfolio and click with the right mouse button on “Open in Chart”. Tradesignal automatically links the chart with the portfolio, so that each of the accompanying charts, together with entry and exit signals, is shown when you click on a single security from the portfolio. In this way, you see at a glance which results are generated by any individual security.

BY THE WAY: You can control many other useful functions with the right mouse button. For example you can group and sort the portfolio securities, add or remove trading strategies or define individual columns that you would like to be displayed in order to receive only the information you need.

Analysis to the last detail with the performance report.

You would like to get more insight about the results of the trading strategy? This isn`t complicated at all – just click the “Performance” button in the upper toolbar. Now you can analyze all the important indicators such as profit factor, maximum drawdown or greatest profit and losing trades to the last detail – both for the total portfolio and for a specific value. If you click on “Returns” you can see the absolute performance of your trading strategy on a monthly, quarterly and yearly basis, further allowing you to check the robustness of the strategy. Additionally, Tradesignal provides you with charts of the equity curve and the maximum drawdown so you get a good insight into the risk, while the “Trades” section displays every single transaction in detail. The following figure shows a section of the performance report.

FIG. 2: PERFORMANCE REPORT TRADESIGNAL ENABLES A DETAILED ANALYSIS OF ALL TRADING STRATEGIES.

In the Performance Report, many statistics and numerous graphics for risk and return are available to the portfolio manager.

Keep track of things with the Position Manager.

Finally, we would like to show you how you can stay informed for all trading activities at any time. For this, you only need to add the “Position Manager” on the upper toolbar and activate the plug icon located in the lower right corner of the equity curve of the portfolio. A moment later, you will get a clear table of all open positions and all active orders. Now you can see all open positions, active orders and the current P&L. This is a great tool for monitoring your assets.

FIG. 3: POSITION MANAGER.

The monitoring of all open positions and related orders including entry and exit price, position size and the current P&L is a breeze with the Position Manager.

Never miss a signal with the alarm function.

How useful would it be to be notified automatically for all important activities? This is possible with Tradesignal – just go the upper toolbar and select the “File” menu and then click on “Options” and choose the “Alerts” section. In addition to entry and exit orders for all active trading strategies, indicators such as trend lines can serve as the basis for a notification. Tradesignal will automatically alert you in real time when any of the events occur. You can choose different types of alerts: a pop-up on the screen, an email or an audio alert. In short – using the alert function you will never miss a signal.

FIG. 4: ALERT SETTINGS.

Using the alert function you will never miss a signal any more. In addition to indicators, signals for all active trading strategies and indicators like trend lines can serve as the basis for notifications. Tradesignal informs the user in real time – with a pop-up, an email or an audio alert.

The S-Class for portfolio managers and traders.

To summarize: Tradesignal offers all the features portfolio managers and traders need in a single tool, starting with the creation of individual price lists that can be equipped with full trading strategies and detailed performance reports, as well as optimization to easily monitor all positions coupled with flexible alert features. The intuitive and flexible workflow ensures that your tasks can be carried out quickly and efficiently, whether you use data sources such as Bloomberg, Thomson Reuters Eikon, Trayport or Global View. Convince yourself today that the award-winning software will help you benefit from quality “Made in Germany”.

That`s it for today – take care, take profit.
David Pieper

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