How QiT works
Each piece of this picture plays a vital role in the process of making it to the bank.
#1 Data
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.
#2 Software
Trading Software is one of the most important tools in your arsenal and it must have a thorough understanding of technical analysis. Technical indicators are the basis of the inputs. Faulty software, or one without the required features, may lead to huge miscalculations in your algo development process.
When choosing a software provider cheaper is not always better and you must consider what you want from it, what it can deliver, ease of use, platform stability and most importantly what support you are going to receive from the company.
QiT’s trading software puts it all together, applies the algorithms to the each and every stock in the database, then lists all the stocks that adhere to the rule set for that particular day.
QiT uses Amibroker for this purpose.
Algorithm or the code – the Strategy
A backtested and quantified ruleset or pattern that has proven to be profitable in the past. These patterns are expressed in a formula our trading system development software can read so they are reproducible and can then be evaluated statistically.
#3 Trading Signals
Each night our software scours the entire US stock market for patterns. The stocks that meet our criteria are called signals because they signal a trade with the highest probability of winning. But we don’t stop there. We then use another filter to rank all the signals and only trade the best of the best. Once again, we don’t stop there! Each signal we trade then uses a limit order to turn a very good trade into a great trade.
Trades are then 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
Ticker
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
#4 Members Log on to the Member’s only site
#5 Member’s Log on their own broker
Each member will place the signals from #2 (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.
#6 Take all your profits to the bank
We’re the Plan in “Plan your Trade and Trade your Plan” – TraderJanie
“If awesome were inches, we’d be the Effiel Tower.”
