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Improvian Guide
CHAPTER 5
Your First Trading Strategy
Using Strategy Builder
With Strategy Builder you can design, historically test and fine-tune your
trading strategies.
To create a trading strategy, you need to formalize your own trading ideas or
modify/improve the existing ones. To do so, you need to define the conditions
for your buy/sell rules using Improvian Editor.
To launch Strategy Builder, in the Tools menu, click Strategy Builder.
The Strategy Builder dialog box contains a toolbar, a list of your strategies and
the parameter pane that displays the parameters for the selected strategy.
Using the Strategy Builder toolbar you can create, edit, copy, delete and apply
the selected strategy.
Tradecision contains several predefined strategies based on well-known trading
ideas. You can review them to get an idea about the strategies’ structure and
the instructions used in buy/sell rules. Below you can find information on how
to create a new strategy based on a wide-ranging day pattern.
Wide-ranging days have a true range that is far larger than the true range for
the previous days and are especially meaningful after a strong trend. The
simplest formal definition of wide-ranging days is as follows: a wide-ranging
day is a day on which the true range for the current bar is twice (or more)
bigger than the true range of the preceding N-day-long period. The simplest
strategy based on the wide-ranging day pattern is entering into a position if the
close of the bar following the wide-ranging bar is more (or less) than the true
high (or true low) of the wide-ranging day.
Note: This rule is too simple to be used as is, so you should be
prepared to learn to improve this strategy in the following chapters.
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