Software capabilities
The search function can be used to discover strategies in historical daily or intraday data that fulfill user-defined performance statistics and risk/reward parameters. The strategies can be grouped in any way the user desires and in the case of daily data they can be added to the system tracking module of the program for monitoring signal generation as new data are added. Alternatively, the program can generate code for several popular trading platforms so that the strategies can be implemented there. When the search function is used, DLPAL serves as a meta-system that discovers trading systems automatically.
Below are some of the capabilities of the search function:
Discover strategies in historical daily or intraday data that fulfill user-defined performance statistics and risk/reward parameters. This is the primary use of the program.
Discover strategies in historical daily or intraday data that fulfill user-defined performance statistics and risk/reward parameters and are in addition profitable across several other securities.
Identify in which markets there are short-term trading opportunities by noting the number of short-term strategies the program generates.
Determine best profit target and stop-loss levels for particular markets by running a search with multiple parameters.
Determine best timeframe to trade by running different searches in different timeframes.
Use code generation to implement systems in various platforms and the raw code generation option to generate a file to be used as input machine learning algos.
Perform a portfolio backtest to identify robust strategies.
Identify mean-reverting strategies. Instead of finding robust strategies that maintain their profitability, one may identify high win rate strategies with a tendency to degrade.
Software limitations
DLPAL S is a quantitative analysis tool. DLPAL S will not create final systems for autotrading. The user of the software has to put the work necessary for developing a final trading system according to desired criteria and risk/reward objectives. Trading strategy development is a difficult and time-consuming task and success with it is not guaranteed. DLPAL S will not find strategies that work on all markets especially if the markets are efficient and price action is dominated by noise. Read our disclaimer before ordering a license of DLPAL S.
Like any software developed, DLPAL has code limitations:
The program can read only ASCII text files.
File names, excluding the path and the .txt extension, must be less than 26 characters.
The back-testing algorithm calculates a limited number of performance parameters.
The system tracking function does not keep a log of the trading signals generated.
We are working on some of the above limitations as improvements for future versions. If you have any suggestions for any additions or enhancements to the program you may contact us using the appropriate e-mail address listed in our website: http://www.priceactionlab.com