The 7 Step Guide to Developing a Trading Strategy
The Ultimate 7 Step Guide For Creating An Effective Trading Strategy
Your real outcome of the Trading can be well managed & Controlled by putting a Trading system in place. The Trading system defines a methodical approach to trading. Most recently, No Code Bot Builder & ‘Trading Bot Backtesting’ like tools have been hot favourites in the Trading lobby.

In the case of Algorithmic trading, choosing the Best algo trading app would be a part of the Trading system.

Call it a Trading system or Trading strategy, It’s one and the same thing. So to Build your own Result oriented trading system Below is a 7 step process you should Follow :

Step 1: Enter - Exit Strategy

You make a buy or a sell in the Market when the Price of a Particular stock or Entity reaches a specific value. In this step, We define & Tell the system when we Enter the market and When we Take an Exit.

Let’s say Currently the Price of Stock A is 100. If it crosses 120, it will be in Bullish territory & So you want to buy that stock immediately as it crosses the 120 mark.

We define this logic & Conditions in the System, and System will take care of it with an Ease in the Realtime market.

Step 2:  Choosing the Right Platform

After deciding Logics & Conditions for trading in the last step, It’s time to choose the right platform. Now there are dozens of platforms available, which one do you Pick? It depends on the following factors:

  • Does it Offer No Code Bot Builder ?.

  • Ease of using,

  • Reliability,

  • Commission charges,

  • Variety of Markets available,

  • Coding knowledge Required.

There are many market types out there. So give a 

a good check to the Various marketplaces that a Trading platform has to offer. So if you are trading in m markets, you don’t have to End up using as many Platforms for different Marketplaces.
Coding knowledge is also another important factor. If you have zero knowledge of coding, Choose the trading platform according to it. Picking up a Best algo trading app should Fulfill pretty much all your Requirements. SpeedBot is one such platform providing end to end AlgoTrading feasibility from creating the strategy, testing it, and deploying it.

Step 3: Acquiring Data & Past Performance

It’s time to add the modern-day crude Oil into the Mix - The Data. There are many providers out there from whom you can get this Data.

Below are the crucial Fruits you get out of this Data :

  • Historical entity performance,

  • Market behaviour pattern,

  • Segmental performance analysis,

  • Assets selection Guidance.

These data provide information about Individual companies' past performances & Historical market behaviour patterns.

This Data can Boost your Trading outcomes much further. Especially when coupled with Best algo trading app in the market.

Step 4: Data Testing & Correction

Before we enter the Live market with Real money, it’s time to put the Acquired data to a Test. From the data received from the provider, but a part of it to Test with the Enter-Exit strategy developed in Step 1. See how the data performs with the planned strategy.

If the results are Positive & Satisfactory - It means We have executed All 3 Important aspects - 1. Strategy, 2. Platform picking & 3. Data procurement with perfection. If the results are not up to the mark - Consider making changes to the Strategy or the Acquired data, or Both.

Trading Bot Backtesting is noteworthy development here. Platforms such as SpeedBot offers 100% data backtesting with the Help of Bots. These trading bots have the Power of state-of-the-art Technologies like machine learning & Artificial Intelligence (AI).

Step 5: One Final Validation Check

After all the corrections post Trading Bot Backtesting, We have our Best data Ready. After making necessary changes (if any) to the data during the previous step, our data is in the Best Shape.

As part of one final check of safety, Take another part of the Improved data & Put it to Test against the Live market. Execute the Strategy built in the First step & Study the results.

‘No Code Bot Builder platforms’ can be of real help here. You can create a trading bot with completely zero coding & deploy it right away. This trading bot will Perform all the Trades on your behalf with complete ease.

Following the Exact same strategy & approach that you have Instructed. Post this, Your data is Now gun ready & Raring to go. Let’s dive down to the Final 2 Steps.

Step: 6 Demo Trading Time!

All our weapons are now Ready :

  • Trade Enter - Exit strategy,

  • Platform picking,

  • The Data,

  • Backtesing & Validation.

Demo trading or paper trading will Help us take the Actual feel of Trading in a Live market without Real money. This step is to Mentally acclimatize to live market & live money tradings. Below Is an Efficiency Hack :

  1. Take a deep breath,

  2. Open the trading app,

  3. Use the No Code Bot Builder,

  4. Create & deploy trading bots in Minutes,

  5. Complete mock trading in the Live market.

Step 7: Deploy Trading System

Our entire trading system is now Robustly prepared & Ready to roll. After all the rigorous Trading Bot Backtesting and data corrections, your trading system is in Best shape to Ride the market trades.
For optimal results, Make sure you pick only & only the Best algo trading app for All your tradings. Be it equity, leveraged, option buying or the market of your Choice.


The 7 Step Guide to Developing a Trading Strategy
SpeedBot Team 20 May, 2022
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