Sitting in a car on my way to a remote mountain to put my body through another grueling hike, I fired up my iPad to show off the QiT website to my hiking buddies. Well they all said they liked it, it was nice but I could see they were like a deer in the headlights. They had no idea what Quantitative trading was much less what QiT was all about. I tried to explain it all but I could tell I was missing something. Then one of them said, “draw us a picture,” so I did and here it is.
Each piece of this picture plays a vital role in the process of getting trades placed with your broker.
Any charting or backtesting software needs a data input and that data has to come from a data provider. Although there are many data providers on the market nowadays, not all will fit your trading style. However, the decision as to which one to use becomes much easier once you decide on the market you’re going to trade and the software you’re going to use. Your data provider has to have an API for your software, provide data for the market you’ll use, as well as have no survivorship bias. QiT’s data provider is Norgate Premium Data.
This is the QiT rule set and has been written in a language our software, Amibroker, can read. QiT has two algorithms. Each one is explained under Performance.
QiT’s trading software will put it altogether, apply the algorithms to the each and every stock in the database, then list all the stocks that adhere to the rule set for that particular day. QiT uses Amibroker for this purpose.
These are the setups, or the trade signals, that are generated by the nightly scans. These are the trades that are posted to the QiT’s members only site. The trade signals are DAY orders and include the following detailed information for each potential stock alert:
- Effective Date for the signals
- Company Name
- Suggested action such as BUY, Sell At Open, SHORT, Cover at Open, or HOLD
- Suggested Limit Price Per Share if opening a position
- % of Portfolio for each position
- Suggested number of shares if opening a position
Each member’s individual broker
Each member will place their own trades with the broker of their choice.
One last note, QiT does no speculative trading; we only provide signals to our members based on QiT’s proprietary algorithms and indicated buy and sell points.
One last point.