What is Algorithm Strategy?

What is 'Algorithm Strategy'?

A 'Strategy' is a combination of various conditions that define when to buy or sell a particular Trading Symbol on predefined algorithms to trade. For every trading strategy, one needs to define assets to trade, entry/exit points, and money management rules. 

Algorithmic Trading strategies are based on technical analysis. They are usually verified by backtesting & optimization where the process should follow the scientific methodand by forward testing e.g. 'paper trading' where they are tested in a simulated trading environment[A2] 

The KEEV platform enables users to make Algorithmic trading strategies without programming.

Algorithms that users use to trade are usually a combination of technical indicators (MACD, RSI, etc.) used along with comparison (>, <, = etc.) and logical (AND, OR) operators.

KEEV provides the KEEV Canvas, which is a simple as selecting technical indicators, keying in stop loss and target profit percentage and selecting the stocks you want to trade with to rapidly create and iterate on strategies.

     Below is an example of a simple Algo that a user can create :

  1. Buy when the price drops by 2%
  2. Sell when the price rises by 3% 

This Algo, when converted to a strategy using the strategy builder, looks like :

Users can choose from over (Add num+) indicators and candlestick patterns to create millions of strategies. Users can backtest these strategies to optimize them across different asset classes and further trade (paper and live) on the supported exchanges.

    • Related Articles

    • How to Create Algorithm Trading Strategy?

      The Keev Strategy Builder is a simple as selecting technical indicators, keying in stop loss and target profit percentage and selecting the stocks you want to trade with that enables users to create relatively complex strategies without programming. ...
    • How does Trailing stop loss work?

      A trailing stop loss is a type of day trading order that lets you set a maximum value or percentage of loss you can incur on a trade. If the security/instrument price rises or falls in your favor, the stop price moves with it. If the security price ...
    • How 'Stop Loss' and 'Take Profit' work?

      Stop Loss and Take Profit are the orders which helps user to manage their risk and optimize the strategy return.  Stop Loss:  When a person place an order, it may happen that the trade does not go in his desired direction but moves in an opposite ...
    • How does the Indicators selection work?

      Technical indicators are mathematical calculations based on the price or volume of a security or contract. By analyzing historical data, technical analysts use indicators to predict future price movements of the securities/contracts. Examples of ...
    • How 'AND' or 'OR' Logic Connector work?

      ‘AND’ or ‘OR’ Logic connectors can be used when user wants to combine more than one indicators to form a single entry/exit strategy. You can connect more than one indicator with the help of an ‘AND’ or ‘OR’ connectors. There are 2 kinds of logic ...