What is a Strategy?
A strategy is a backtest with fixed trading pairs and a defined money management policy. While a backtest determines many aspects of a trading approach—including entry and exit points, stop-loss and take-profit orders, and pyramiding settings—it is not yet a complete trading strategy.
To execute a trading strategy, two additional factors must be configured:
Which trading pairs will be used in the strategy?
How will the strategy handle profits and losses?
When the two above-mentioned are defined, the strategy is ready to be executed by a trading bot.
The trading pairs and money management policy are fixed by configuring the report settings in backtests. In other words, any generated report in the Report section of the Backtest can be turned into a strategy.
Trading Pairs
The QuantiX platform allows you to execute strategies with single assets or a portfolio of assets.
Single Asset Configurations
When the report mode is set to Multi Pairs, the strategies generated from the report will be single-asset strategies. Use pair(s) to select which trading pairs are added to the strategy.
Portfolio Configurations
As mentioned above, you can run trading strategies with a portfolio of assets. To do so, select Portfolio in Mode. When Portfolio mode is selected, the following settings must be configured to finalize the trading pair allocations.
Portfolio Ratio
Defines the allocation of each asset from the strategy's initial capital. By default, each asset in the portfolio has an equal share, but you can adjust this by modifying their weights. The share of each asset is calculated by dividing its weight by the total weight of all assets in the portfolio.
Max Pairs Traded at Once
This number defines the maximum number of trading pairs in which the strategy can hold open positions simultaneously.
For example, if a portfolio contains five trading pairs and Max Pairs Traded at Once is set to 2, the strategy can only hold open positions in two assets at a time. In this case, the strategy cannot open new positions unless it first closes at least one of the currently open positions.
Money Management
The QuantiX platform offers different money management strategies to help control strategy performance. You can choose from three options:
Fixed: Trades with a set amount of money, without reinvesting profits. If losses occur and the balance falls below the initial value, trading continues with the remaining funds.
Compound: Always uses the total balance as trading capital, automatically adjusting based on gains or losses.
Borrow: Does not reinvest profits, but if the balance drops below the initial value, additional funds are borrowed to maintain trading capacity.