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System Builder

The 'System Builder' window can be accessed via the commands drop down menu or the commands toolbar:

The system builder window allows you to create a set of trading rules for opening and closing long and short positions. Once you have completed your set of trading rules you can then run your system on historical data with the system simulator window.


CASE STUDY

In the example below we will be setting up the following rules.

OPEN LONG POSITION: When a 10 day simple moving average crosses above a 20 day moving average.

CLOSE LONG POSITION: When a 10 day simple moving average crosses below a 20 day moving average.

Obviously, the trading system we're about to create is quite basic. However, the principles for setting up these rules are exactly the same as setting up much more complex strategies you might be wanting to try out.

To create this system

Step 1: Click on 'add rule'.

Step 2: In the list of indicators that pops up, scroll up and click on 'moving average - simple (MAV)'.

Step 3: Change the term on the right to 10 and press 'enter' on your keyboard.

Step 4: In the rule editor at the top of the window click the operator (middle part of the rule).

Step 5: In the menu that pops up choose 'crosses above'.

Step 6: In the rule editor at the top, click on the last part of the rule (3rd line).

Step 7:  From the list of indicators at the bottom choose 'moving average - simple (MAV)'.

Step 8: This time change the term on the right to 20 and press 'enter' on your keyboard.

Your rule editor should now look like this:

Okay, so we've now finished our rule for opening a long position when the 10 day moving average crosses the 20 day moving average. Now we'll need to create a rule to close the long positions. As you will see this process is very similar to what we've just done.

Step 9: In the rule list on the left hand side of the window click on 'Close Long'.

Step 10: Then click on 'Add Rule' at the top.

Step 11: In the list of indicators that pops up, scroll up and click on 'moving average - simple (MAV)'.

Step 12: Change the term on the right to 10 and press 'enter' on your keyboard.

Step 13: In the rule editor at the top of the window click the operator (middle part of the rule).

Step 14: In the menu that pops up choose 'crosses below'.

Step 15: In the rule editor at the top, click on the last part of the rule (3rd line).

Step 16:  From the list of indicators at the bottom choose 'moving average - simple (MAV)'.

Step 17: Then change the term on the right to 20 and press 'enter' on your keyboard.

Your rule editor should now look like this:

 

Excellent! You should now have finished your first trading system. Now in order to run this system in the 'system simulator' you'll need to save it and give it a name. To do this:

Step 18: Click 'File' -> 'Save As'.

Step 19: Type in your name for the scan.

Step 20: click 'OK'.

To learn how to run the system on historical data have a look at the page on System Simulator.

Related Pages:
System Simulator