Research workflow
Trading Strategy Builder
A strategy builder converts a market hypothesis into rules a backtest can execute consistently. The rules should specify inputs, timing, entries, exits, position sizing, and risk controls without relying on hindsight.
Begin with a falsifiable hypothesis
State why a market behavior might exist and what evidence would disprove it. This keeps the research focused and reduces arbitrary rule combinations.
Specify every decision
Define indicator parameters, signal timing, order assumptions, allocation, stop logic, and conflicting-signal behavior. Ambiguity makes results difficult to reproduce.
Keep the first model simple
A smaller rule set is easier to audit and less likely to fit noise. Add complexity only when it addresses a documented weakness and survives separate validation.
Research checklist
- Clear entry and exit rules
- Position sizing
- Execution timing
- A predefined validation plan
Questions and answers
How do I build a trading strategy?
Start with a market hypothesis, translate it into explicit rules, define risk and execution assumptions, then test and validate it on separate data.