Visual Trading Algorithm Development via Criteria Grid
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Solution Overview
Problem
Automatic trading systems face challenges in developing and executing complex trading algorithms due to the need for programming skills, slow development processes, and inability to handle multi-timeframe or multi-symbol strategies effectively, limiting their use to sophisticated algorithms and rapid market adaptation.
Innovation Solution
The introduction of a new bar type called combined bars and a multidimensional Criteria Grid for non-programming algorithm development, along with semi-automatic trading from Mentor sources, enables more precise, fast, and versatile decision-making in buying and selling, overcoming the limitations of timebars and rangebars.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If programming languages are used to develop algorithms in ATS systems, then complex trading strategies can be implemented, but the development process becomes slow and requires programming skills
Solution Approach 1:
The patent introduces a visual programming interface as an intermediary between the user and the algorithm execution system. This interface allows users to define trading algorithms using graphical elements and visual connections rather than traditional programming languages, eliminating the need for programming skills while maintaining the ability to implement complex strategies. The visual interface acts as a mediator that translates graphical algorithm definitions into executable code automatically.
2Adaptability or versatility
If traditional programming methods are used for algorithm development, then sophisticated algorithms can be created, but the process is too slow to follow rapid market behavior changes
Solution Approach 1:
The patent replaces the mechanical process of manual coding and compiling with an automated visual configuration system. Users can rapidly adjust algorithm parameters and logic by manipulating graphical elements rather than rewriting code, enabling the system to adapt to changing market conditions at the speed of visual reconfiguration rather than requiring time-consuming programming cycles.
3Adaptability or versatility
If multiple criteria are combined into personal indicators, then trading decisions become more sophisticated, but the complexity of development and testing increases significantly
Solution Approach 1:
The patent segments the algorithm development process into distinct visual components and modular elements. Each criterion and trading condition can be independently defined as separate graphical blocks that can be combined through visual connections. This segmentation allows complex strategies to be built by assembling pre-defined modules rather than creating everything from scratch, reducing overall development complexity while maintaining strategy sophistication.
4Reliability
If back testing is performed on multiple algorithm combinations, then profitable strategies can be found, but the time required exceeds available developer time
Solution Approach 1:
The patent implements preliminary action by pre-configuring and pre-testing algorithm components and criteria before they are needed in the final strategy. The visual programming interface allows users to select from pre-validated building blocks that have already been tested for effectiveness, eliminating the need to perform exhaustive back testing on every possible combination from scratch. This preliminary preparation significantly reduces the time required for strategy development and validation.
Data Source
AI summary
A computerized trading system for trading a tradable product at stock exchanges where a user can define a number of criteria to be met in order for the system to allow/indicate a trade order of a selected Symbol or allow/indicate a pair trade of two selected Symbols. A method to format a data stream providing a novel result used for the calculation of technical indicators and the derived criteria and/or used for visual presentation of price movements of the tradable product in the computerized trading system by determining the time to close a bar. Product data having product prices is received at different times by the computer system, and the computer system for each closed bar has corresponding bar data buffers with data representing time of close of bar and last received product price at close of bar.