What is ProQuant
ProQuant lets anyone build and follow automated trading strategies for stocks, forex and cryptos via an easy to use mobile app. It combines complex algorithms, powerful cloud computing and simple user interface to make algorithmic trading accessible to anyone, not just the big Wall Str. players.
The ProQuant mobile app
With the ProQuant app it takes only a minute to run your first trading strategy. It is perfectly enough to choose one of the existing strategies in the Strategy Library and press “Run” in order to start automatic trading. Or geek out and go as deep as you want by experimenting with various parameters to generate your own customised, tailor-made strategy.
This is made possible by the Strategy Generator, an innovation of ProQuant - using complex algorithms, it composes strategies automatically, evaluates each strategy by backtesting it against historical data, presents the results in stats and charts and shows the most profitable strategies found. Thus, instead of manually testing the performance of each combination of various rules, traders can set their own basic criteria and ProQuant generates and backtests thousands of possible strategies to present a list of the top performers. The whole process takes mere seconds, then the trader can immediately save the strategies, run or modify them. The PQ strategies run in the cloud utilizing vast computing power so that traders won’t have to deal with any technical issues.
Then you can run your strategies for as long as you’d wish in a risk-free real-market simulation before trading with real capital, which is another valuable option that ProQuant gives to its traders through an easy connection to trading platforms.
In ProQuant, strategies are sets of rules for opening positions (Entry Rules) and for closing positions (Exit Rules) which trigger BUY or SELL signals for a great number of financial instruments. Currently, the rules are based on combinations of standard and widely used technical indicators
are indicators that determine the conditions for opening a position. A strategy can have up to four Entry Rules. ProQuant uses these rules to evaluate whether a position should be opened and in what direction. All Entry Rules are evaluated periodically at each bar, depending on the trading frequency of the strategy. This evaluation is done via backtesting, which is an automated testing of the proposed strategy against real-market conditions within a certain period of time in the past. The evaluation of each Entry Rule results in an “answer” or “vote”, which shows whether the strategy should open a position in a certain direction. However, we wanted ProQuant to open a position only if all Entry Rules requirements are met. In other words, if one Entry Rule produces a signal in a given direction, but another one doesn’t, ProQuant will not act and will not open a position at all.
are indicators that determine the conditions for closing a position. A strategy can have a maximum of two Exit Rules. Even when we have the maximum number of two Exit Rules, the strategy will close the position at Bar Open if one of them is satisfied, regardless of the other, which constitutes a major difference between the Entry Rules and the Exit Rules.
You can acquire strategies by configuring and running the Strategy Generator in order to generate, backtest and filter top-performing strategies. First, you must choose an instrument to your liking, be it stocks, forex, commodities, cryptos or indices. After an instrument has been selected, you will have to take a look at the three major properties of the strategies to be generated - Funds for Trading, Leverage and Trade Size - and either accept the default values or change them in the preferred direction.
At any point, while setting up the Generator, you have the ability to dive deep into its Advanced Mode in order to select and set preferred values to any number of the additional settings that are in stock, along with the so-called Acceptance Criteria. All you need to do is scroll down and choose from the list:
Generator Acceptance Criteria
How the Generator works
The Generator composes sets of entry/exit rules (i.e. strategies) and simultaneously filters them down according to the specified acceptance criteria. This whole process happens so fast that the Generator can evaluate hundreds of strategies per second.
Backtesting assesses the viability of a trading strategy by discovering how it would play out with historical data. It allows a trader to simulate a trading strategy using historical data to generate results and analyse risk and profitability before risking any actual capital. A well-conducted backtest that yields positive results is a sign that the strategy is fundamentally sound and is likely to yield profits when implemented in reality.
ProQuant evaluates the entry/exit rules bar by bar, from the beginning to the end of the historical data for the chosen test period, and calculates the trading results. When the backtesting is finished, the Generator shows you the top performers from the virtual trading. If you get very few results, or none at all, this is a sign that some of the criteria settings you have specified are too restrictive.
You can additionally edit, your saved and running strategies, by introducing Stop Loss and Take Profit orders or changing their settings if the strategy already has them :
And this is how we get to the greatest advantage of using ProQuant. Our app enables you, by choice, to switch to real-market trading via one or more of our supported brokers/exchanges. Currently we support Trading 212 for CFDs and Binance for Cryptos but more options are coming soon. To link ProQuant to your broker/exchange account, simply go to "Connections" in the app and follow the steps. Once you have completed the connection process, you may enable a strategy to trade automatically through the connected account. This can be done at any point, even while the strategy is running.
General rules for trading
After you have successfully tailored a strategy and selected an instrument, the actual trading begins. In implementing it, ProQuant follows some strict trading rules: