Brute Analytics VIEW360^TM  Walk Forward Analyzer 

 

Trading   "Know The Risk Before You Trade"

 

In trading, there is the natural desire for the “need to know”, to create “clarity from chaos”, and determine the “what if” results of a trading strategy before we even begin.  This need not only exists in everyday trading but is magnified even further whenever trades are highly leveraged with margins, market volatility is at all time highs, and emotions are clouding our perspective.   Sometimes it's not just knowing what to do, but also what not to do. 

 

Developing a trading strategy using insight and historical information is essential.

However the real question is ...  How do we test our theories before we trade?

 

 

Walk Forward Analysis

 

Much has been written regarding the importance and the value of performing a Walk Forward Analysis before actually trading a specific strategy.  Simply defined, Walk Forward Analysis is a method to independently validate any systematic trading model going forward.  It is a critical step in the technical trading process of strategy formulation, testing, optimizing, analyzing, and evaluation. 

 

 

Trading strategies are often developed, tested and optimized using technical or statistical methods on historical information.  These trading models can be inadvertently over or under “curve fitted” to reflect the time-series data.  Although these strategies may test well as applied to the sample historical data, they may not work as well going forward as market conditions change.

 

A Walk Forward Analysis simply selects the trades generated by your optimal trading strategy during a historical time period (“in-period” or “in-sample”) and then compares the results of that same trading strategy in the following shorter time period (“out-period” or “out-of-sample”).  This process is performed repeatedly as the analysis “walks forward” though the time series of trade information.

 

   

Walk Forward Analysis is a valuable tool in that it measures trading models on:  

1) Their ability to successfully and consistently generate a profit.

2) The rate they can compound and accumulate profits. 

3) The impact of market trends, volatility, and liquidity on the effectiveness of the trading strategy.  

Based on the results of the Walk Forward Analysis, the performance of a trading strategy can be evaluated and possibly adjusted for better results overtime and in total.  A Walk Forward Analysis may even be performed on a portfolio of trading strategies and commodities to view the entire impact on results.  

   

 

Brute Analytics VIEW360^TM

 

In order to truly understand the risk associated with any trading strategy, we need accurate information, precise processing, and meaningful analytics.  Applied together we gain knowledge and confidence in what we do and the risks involved.

 

Brute Analytics VIEW360^TM provides this solution.  

 

VIEW360^TM uses your optimized trading information and precise computer processing power to generate meaningful and understandable results.   VIEW360^TM works in conjunction with your trading system to collect and process market data to validate your trading strategy, even when very complex.  It is a highly versatile easy to use system for evaluating a trading strategy as it is applied throughout multiple time periods.

 

“Think It.  Test It.  Trade It.” ^TM

 

Brute Analytics VIEW360^TM easily imports detailed trade information and selects your optimal trading parameters within each "in-period" sample using common list menu of keyword field names, standard trade functions and logical operators already familiar to most industry traders.     

 

More importantly, Brute Analytics VIEW360^TM creates a better understanding of what would have happened based on the actual market conditions outside of the historical sample data the trading strategy was originally based upon and what the immediate as well as long term financial results that would have been achieved.

 

Bottom-line: We believe that success in trading requires having information, insight and, of course, trading discipline.  Brute Analytics VIEW360^TM is the analytical tool to help bring this capability to you.

 

    

IMPORTANT: Please Read.

 

Risk Disclaimer

Stocks, Commodity Futures and other financial devices can entail a high degree of risk and are not appropriate for all investors. Brute Analytics VIEW360^TM is strictly based on the software developers' interpretation of trading concepts. It is intended to be used only as a valuable analytical tool.  Any actual investment actions based on this software is at the Users own risk.  Any stock or commodity trading information provided is from sources believed reliable, but is in no way guaranteed. The developers may have positions in the markets mentioned including at times positions contrary to the advice quoted herein. The system design, functions, processing methods, market data and recommendations are subject to change at any time. Past Results Are Not Indicative of Future Results.

Hypothetical Performance

  
Hypothetical performance results have many inherent limitations, some of which are described below.  No representation is being made that any actual investment will, or is likely to, achieve profits or losses similar to those shown.  In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.  One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight.  In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.  For example, the ability to withstand losses, or to adhere to a particular trading program in spite of trading losses, are material points which can also adversely affect actual trading results.  There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

 

 

TradeStation® and EasyLanguage®  are registered trademarks of TradeStation Technologies, Inc.   

Neither TradeStation Technologies nor any of its affiliates has reviewed, certified, endorsed, approved, disapproved or recommended, and neither does or will review, certify, endorse, approve, disapprove or recommend, any trading software tool that is designed to be compatible with the TradeStation Open Platform.

 

* Brute Analytics View360^TM is available in download format only.