System Interface
Interface Overview
Functions
The left-hand sidebar is where you can manually input your trading strategy
Alternatively you can chat with TradeTutor from the chat interface
Saved Strategies: On the top right, the icon
shows your saved chats, when clicked the chat history appears on the right
Learn to prompt TradeTutor here:
Prompting TradeTutorTerminology Overview
Sell when and Buy When
To clarify when TradeTutor would initiate a sell based on the given prices:
Ask Price: This is the price at which a seller is willing to sell an asset. TradeTutor would initiate a sell when the asset's current price reaches or exceeds the ask price, signaling that the asset can be sold at that price.
Bid Price: This is the price at which a buyer is willing to purchase an asset. TradeTutor would initiate a sell when the asset's current price matches or falls below the bid price, as it reflects the price a buyer is offering to buy.
Midprice: The midprice is the average of the bid and ask prices. TradeTutor may initiate a sell when the asset's price reaches or crosses the midprice, as this price often represents a balanced point between buying and selling interest.
In summary:
Sell/Buy at Ask Price: When the market price is at or above the ask price.
Sell/Buy at Bid Price: When the market price matches or drops to the bid price.
Sell/Buy at Midprice: When the market price reaches or crosses the midprice.
Indicator type Strategies
TradeTutor can use both Moving Average and Price Volume indicators to determine buy or sell decisions, depending on the specific trading strategy. Here’s how each indicator works:
Moving Average (MA):
Buy Signal: When the price crosses above the moving average (indicating upward momentum).
Sell Signal: When the price crosses below the moving average (indicating downward momentum).
Price Volume:
Buy Signal: When price rises with increasing volume, indicating strong buying interest.
Sell Signal: When price falls with increasing volume, indicating strong selling pressure.
If TradeTutor uses Moving Average, it focuses on price trends over time. If it uses Price Volume, it looks for shifts in market activity and strength. Depending on the strategy, TradeTutor may use one or both of these indicators to decide whether to initiate a buy or sell action.
Symbol name
For TradeTutor, the symbol name could be any publicly traded company's ticker symbol, like:
Barclays – the company’s name.
So, if you’re selecting a symbol name for TradeTutor to represent a specific stock or company, you would typically use the company's name or its ticker symbol.
BackTesting
Backtesting is a method used to assess the viability of a trading strategy by simulating it with historical data. The underlying theory is that any strategy that performed well in the past is likely to do well in the future, and vice versa.
Backtesting allows a trader to simulate a trading strategy using historical data to generate results and analyze risk and profitability before risking any actual capital. If a backtest yields positive results, it assures traders that the strategy is fundamentally sound and likely to yield profits when implemented in reality. Conversely, if a back test yields suboptimal results, it prompts traders to alter or reject the strategy.
In TradeTutor, traders can use back testing to formulate quantifiable trading ideas and input them into the backtesting platform. It's important to select data from a relevant time frame that represents various market conditions and ensure the historical dataset includes stocks from diverse scenarios. All trading costs should be accounted for in the backtesting process to accurately reflect a strategy's actual profitability. The strategies should then be validated through rigorous testing before implementing them in live trading scenarios.
Purpose of Back testing:
Validates strategy effectiveness.
Analyzes risk exposure.
Provides insights into potential profitability.
Check out the follow up feature:
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