SpreadBuilder – professional software complex for automated search of profitable spreads.
SpreadBuilder made for automated search of the most profitable instrument combinations (spread portfolios) for spread strategies, including pair trading, statistical arbitrage and basket trading. Using unique algorithm, the system goes through various combinations of tools and selects the best of them. For any spread portfolio, system can automatically generate ready trading system, which can be instantly opened as a MegaTrader project and put in real work.
Spread trading strategies, for example, pair trading, arbitrage, basket trading – are the only trading strategies, which are scientific based and which can make profits for long time. The main idea of spread trading is to find such portfolio of trading instruments, whose cost is constantly striving to return to some mean value. Obviously that such spread portfolio is very easy to trade: it’s enough to open deals when spread is different from average and close when it becomes equal to average value. Due to this, spread trading strategies have characteristics as: stable profit, independent from market movings, low risks and easy trading rules, which are easy to automate. Read more about spread trading here.
A natural question arises: if this is such a profitable strategy, then why it is not used all? The answer is simple - the complexity of finding suitable combinations of instruments (spreads) and the calculation of the optimal weighting coefficients leaves no chance for traders simple to take advantage of spread trading. That is why these strategies are still the prerogative of only large hedge funds and investment companies. But now, with the help of SpreadBuilder program, any trader, regardless of their level of training, can take advantage of these unique strategies.
SpreadBuilder will give you new opportunities for profitable trading stable, previously inaccessible to ordinary traders. It is known that such is really profitable and reliable trading strategies such as spread trading and the pair trading, still be able to use only the large hedge funds and investment companies that can afford the maintenance of special analysts departments that produce the most complex calculations. Normal trader who does not have serious knowledge of the corresponding scientific fields, you can not build yourself a spread portfolio and to calculate the optimal coefficients for trading instruments. But now, with SpreadBuilder program, these strategies are available to all. You do not need to be an expert in the analysis of data, it is not necessary to understand concepts such as regression, cointegration, beta coefficients, etc. SpreadBuilder will do all the calculations for you and provide you with ready-made solutions that can immediately start to work.
SpreadBuilder import historical data directly from the trading terminals. Then, using a unique algorithm, directed search, the program goes through different combinations of trading instruments, focusing on promising areas. In addition, for each combination of tools the program calculates the optimum weights, trying to build the most convenient and profitable for spread trading schedule. At the end of the algorithm the program displays a list of the best spread portfolios, for all of which can be automatically generated trading system.
The unique algorithm developed by us is that it tries not all combination of instruments that would take too much time and resources, and at an early stage the search finds promising direction and focus only on them. Due to this know-how, SpreadBuilder program in just a few minutes is able to find the most profitable combination of any complexity and provide ready-made trading decisions.
After start of SpreadBuilder in the account field, the list of all running trading terminals accounts, where is installed MegaTraderExchange will appear. It is necessary to choose the terminal, you need and to choose timeframe of analyzed data.
After you select the account in SpreadBuilder window will be shown all trading instruments, which are opened in the Market Watch "window” of the terminal. Is necessary to note all the tools, that will be involved in the construction of spread portfolio.
The next step you need to specify the time period for analysis of historical data. By default, the program established for a maximum period of available data in the trading terminal.
The next step it is necessary to specify the maximum complexity of the spread, i.e. the maximum number of tools that can be included in the spread portfolio. For example, if the maximum complexity of the spread is 5, then in the process of settlement program will be considered spreads consisting of 2, 3, 4 and 5 instruments.
Next, SpreadBuilder will search for all combinations of the most profitable tools and displays them on the screen. When selecting any combination on the right panel a detailed schedule of the spread will be displayed and the table with the calculated parameters for all instruments included in this spread. For each tool is indicated by its weight, size teak, teak cost, and the value of the lot (more spread calculation is described here). If a trading instrument is quoted in a currency other than the currency of the other instruments, the balancing factor will appear after lots parameter.
For any spread, the program can generate a ready trading system and upload it as a project for the Megatrader program. Just click "Save as Megatrader project" button. The uploaded project can be opened in Megatrader and immediately launched into a real job.