How it's done

In the beginning.....

We began by examining around 600 paper-based systems, looking for architectural commonalites. Having mapped those out, we programmed just about every combination and permutation as a series of building blocks. Next, we devised a series of essential modules that could assemble themselves, simulating 90% - 95% of any strategy that we might be presented with. That means, for a new prototype, all we have to do is programme 5% - 10% of its content - the rest is automatic.

Altogether our architecture represents over 5 years' investment in development.

Entry Module - typically a mathematical indicator, such as Relative Strength Index or Average Direction Movement used to buy/sell. MicroTelligent have also programmed bespoke modules based on pattern recognition. This module also handles Graphical indication of entry (in the example below, arrows representing SHORT)

Entry Filter Module - filters entry triggers so that only valid entries are made in conjunction with medium term trends. Typically Filters tend to use Moving Averages or other mathematical indicators for entry (in example below, moving averages)

Trailing Stop Module  - trails the STOP with price movement once an entry is made. The type of stops that can be used vary from a simple point based stop, to Average True range stops, or % volatility based stops to a bespoke stop type such as last significant day, as used in David Graeme-Smith's SST plug-in. Multiple stops may also be used, such as point based trailing stop, time based stop and profit take. It also handles graphical display of the stop as trade progresses (in the example, a point-based trailing stop).

Parameter Menu - a user-configurable menu of all system variable settings, such as Entry Module, Entry Filter Settings, Stops Settings and graphical display of Alerts.