Graphical Backtesting Session View for Key-Time Navigation
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Solution Overview
Problem
Traditional backtesting methodologies are time-consuming and inefficient for quickly navigating through historical data to view positions at important times during trading simulations, limiting the ability to compare and refine trading strategies effectively.
Innovation Solution
A system and method for generating a backtesting session view with graphical representation of historic market instruments, allowing users to select 'goto' jumps to specific times, prices, or position conditions, enabling rapid advancement of simulation time to key points.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional backtesting methodologies are used to navigate through historical data, then comprehensive analysis of trading strategies is achieved, but the process becomes time-consuming and inefficient
Solution Approach 1:
The patent implements jump navigation functionality that allows users to skip ahead to specific points in historical data (next session, next day open, next silver bullet session) without processing intermediate data points sequentially. This directly addresses the time-consuming nature of traditional backtesting by enabling rapid traversal through historical periods while maintaining the ability to perform comprehensive analysis when needed.
2Adaptability or versatility
If users manually navigate through each time period in backtesting, then detailed position analysis is possible, but the ability to quickly compare strategies is limited
Solution Approach 1:
The system pre-calculates and stores key time points (session starts, day opens, silver bullet sessions) during the backtesting process. When users need to navigate to these points, the system can immediately jump to the pre-identified timestamps without performing real-time calculations, making strategy comparison much more versatile and easier to operate.
3Speed
If traditional sequential processing is used, then accurate trading strategy performance is measured, but the process lacks speed for rapid analysis
Solution Approach 1:
The backtesting process is segmented into distinct phases: rapid navigation phase where the system jumps between pre-identified key time points, and detailed analysis phase where comprehensive performance measurement occurs at those key points. This segmentation allows the system to achieve high navigation speed by skipping intermediate periods while maintaining measurement precision when actually evaluating strategy performance at the selected time points.
Data Source
AI summary
A system is disclosed, comprising a processor and a memory. The memory stores instructions causing the processor to: generate a backtesting session view comprising a graph having a time axis and a historic instrument value axis, the view displaying a historic instrument mapped on the graph until a first simulation time; receive a first input indicative of a user selecting a jump from a goto menu, the jump being one of a next session jump, a next-day open jump, and a next silver bullet session jump, each jump associated with a goto option stored in the memory and having an indicator and a goto time value; advance the first simulation time until the first simulation time is equal to a next goto time value of a particular goto option having an activated indicator; and draw, in the view, the historic instrument on the graph up to the second simulation time.