Below we have provided details about what the development process of our algorithms actually “looks like”, and what components are involved in democratization.
The Development Process Itself
- The lead trader works with software developers, other traders, and interested stakeholders to begin the process of determining patterns within a specific equity or sector. Traditional methodologies are also considered, such as Fibonacci.
- Once a system is developed, then calls are made for various time and price cycles from intraday to weeks or months in advance.
- When it is determined that the calls meet a threshold of at least 60% (EPIC the Oil Algo is over 90% to-date), then the algorithmic charting can be tested by other traders and further developed.
- Learn about how our team is developing machine learning software for trading oil futures contracts CL and more. “The Bullet Hits Before You Hear It” | Why You Can’t Beat Machine Trading Algorithms.
This may best give you an idea of the type of process we are using:
Which is different than many of the processes we are not using – such as with these algorithms:
- This is a recent blog post from our lead trader about why and how our stock algorithms are different than most.
- At this point, our software developers get involved and ask questions intraday to begin the process of coding the algorithm in advance of it’s digital beta phase. There is an important distinction here in that we use the traditional definition of an algorithm, which refers to a “process or set of rules” to be followed in problem-solving operations. The transition to software development and coding can only occur when the involved parties have been able to successfully apply their process without a computer running on “autopilot”.
- When other traders have worked with the charting and refined it further and the software is ready (which can be years), then beta testing begins. Many of our colleagues, for instance, have only been able to successfully implement and use software solutions with upwards a decade of coding.
- All through this development phase, you can take part in subscribing to the algorithm updates, newsletters, and various other forms of sharing and trade with the settings yourself. Or, if you run a trade room or have a commercial trading enterprise, we can also package an algorithm platform specific for use to benefit your subscriber base or commercial trading enterprise!