How to Build a Simple Algo Trading Strategy without Coding?

Algorithm-based trading software or the Algo trading platform provides an automated trading solution for traders in various market segments. Developing such highly complex software needs a high level of programming with the right coding to create various functions and features that can work seamlessly.

While you can also create the Algo trading strategy, but using the coding, it would be not be possible if you don’t have any knowledge and skills to use coding or similar languages use to develop such applications. You need to learn coding languages like Python, Numpy or Ta-Libs with another similar language to use them for developing highly customised trading applications for different types of cross platforms.

How to Develop an Algo Trading Strategy without Coding?

Developing an Algo trading strategy with coding is the corner of the developers, if you want to build a simple Algo trading strategy without coding, you need to use the automated Algo app. Here, you have to pick an Algo trading platform or application software where you can find the prebuilt trading strategies and use or deploy them as your trading strategy as per the market conditions. However, to develop or create and use an Algo trading strategy you need to follow the steps given below.

Choose an Algo Trading Software: You can find various Algo trading software available in the market that allows you to trade with Algo without using any coding. You just need to choose the right Algo software or online platform offering the coding-less strategy-building functionality. Before you pick such software, you need to pick the right one that can be fully customised without using any coding-related actions.

Define Your Trading Strategy: if you are using a prebuilt trading strategy, you don’t have to go through this step. But if you want to develop your own strategy, you need to define your strategy. It will help you to create an outline for what kind of trading strategy you want to apply as per your risk profile and reward expectations.  

Use the Prebuild Strategies: One of the best ways to build an Algo trading strategy without coding is to use the prebuilt strategies available in the trading software. You can find here all the popular trading strategies developed by experienced developers for different types of market conditions. And you can customise these prebuilt strategies as per your risk profile and return expectations from the market.

Create Your Own Strategy: In the Algo trading software, you will also get the option to create your own strategy as per your trading strategy. As per the current trend and changing market conditions, you can create strategies for bullish, bearish or sideways markets. Here you can select the underlying security and various other options with the facility to automate the trade execution, profit booking exiting etc.

Deploy Trading Strategy: After creating the strategy, you need to deeply this strategy deeply in the Algo trading application. The deployment of strategy will allow you to execute your trade positions in the live market to get the results. Here you can deploy your strategy only through the Algo trading software with the options to customize your strategy and activate as per your trade timing.        

Backtest the Strategy: After creating and deploying the trading strategy, backtesting of strategy is very important to know how your strategy works in the live market trading. To backtest your strategy you can use the historical data and analyse the outputs to check the performance of the strategies. Does your created strategy work well or not giving the results as per your expectations?

Fine-tune Your Strategy: One of the main motives for backtesting the strategy in the Algo is that if you do not find the output as per your trade conditions you need to fine-tune the strategy or modify the trade parameters to optimize the outputs. It will help you to improve the performance of your trading strategy and you can further repeat the same process to refine the strategy till you get the desired results.

Recommended Read: How to Use Algo Trading for Smarter and Faster Trades?

Things to Consider While Building Strategies in Algo without Coding

Developing the strategy would be not enough as there are various ifs and buts that can create problems while building and using such strategies in the live market. While developing the strategies in the Algo you need to consider a few important things that can help to build the strategy without facing any issues to get the best results. We brought here below a few key points that you can consider while developing the Algo trading strategy, especially without using coding or any similar procedure.

Define your Objectives: Before you start building a strategy in Algo, you need to define your goal and trading objectives. What are your expectations in terms of returns and how much risk you are ready to take or your time horizon and type of trade positions? Based on these objectives you would be able to integrate all the necessary functions in your Algo trading software to meet your trading or investing goals.

Research and Analysis: Before you start working on such projects, you need to perform market research and analyse the various aspects. Analyse the historical data, analyse the market trend and chart patterns or use the tools and technical indicators to perform this analysis. This will help you to make a well-informed decision while building the right strategy as per your expectations.

Choose the Right Algo Platform: Pick the right Algo trading platform where you don’t need to use coding while developing the strategy. An Algo trading software or web-based application with all the functions and features to integrate the key features, so that you can build your own strategy without using the coding.

Risk Management: While developing a strategy you need to consider all the aspects to manage the risks. You need to incorporate the stop-loss, positing sizing and maintain the risk-reward ratios to avoid the chances of losses or minimize the impact of risks in unexpected market conditions.

Backtesting & Optimization: Before you use or deploy your strategy, you need to backtest your strategy to check its performance. Based on the results, you can optimize your strategy by fine-tuning its parameters to improve the performance for better profitability and the least chance of losses.

Real-time strategy Testing: After creating such a strategy, you need to test the same in the real-time market, so that you can analyse its performance with live trading data. Real-time testing of strategy will show you the true results and you can tune the strategy as per the current trend or latest market conditions.

Monitoring and Reviewing: Merely creating and deploying the strategy is not enough, you need to regularly monitor and review your strategy to ensure its performance as per the changing market conditions. Regular monitoring of strategy will help you to improve the performance of your Algo trading software.

Recommended Read: Algo Trading Risk Management

Summing-up      

Creating an Algo strategy without coding is not possible without the help of any Algo trading software. Using this automated trading app, you can create your own customised strategy without coding or you can also use the prebuilt strategies that exist in the Algo trading software.

However, for building a new strategy you need to define your objectives and choose the right trading platform providing the trading facilities for various market segments. In the financial markets, you can find various Algo trading apps with the feature of creating your own strategy without using the codes.