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Why Choose TradingDelta

Who Are We?

TradingDelta is a subsidiary company under Technicus Capital, LLC; a private equity research firm.
TradingDelta is managed by a team of analysts who hold the Chartered Market Technician® designation.
We created TradingDelta in order to increase the efficiency of alpha extraction in our trading systems. Nobody has unlimited capital to deploy and as a research firm, we have many strategies that are ready to be executed. Our goal with this group is to "rent" out our strategies in a sense. By charging monthly subscription fees (with limited access), we are able to collectively trade the strategy with maximum capital.
Consider the issue of Alpha Decay. There are many competitor firms that have top-tier resources for researching and developing trading systems. Eventually, one or more firms will end up discovering a system similar enough to, or even better than, one of our own. When this happens, the system becomes oversaturated and untradeable.
In order to combat decaying our own strategies we only allow a limited amount of subscribers for each strategy.

How Do We Backtest?

This a very important topic to discuss. We've seen many improper applications of backtesting trading strategies. Most of these involve using DIY excel spreadsheets or even worse; visually backtesting by looking at a chart. This is a MAJOR issue because they fail to factor in natural slippage and commissions.
Another issue that plagues the backtesting community can occur even when using the proper software. The forward-looking bias (over-fitting) and the survivorship bias are two critical factors that many traders overlook when backtesting.
When backtesting the trading strategies we ensure that all potential fallacies are accounted for. Along with this, we test using multiple software to avoid any potential flukes in the code or testing software.

How do we determine if a system is profitable and robust?

We use many methods to determine whether a system is robust and its respective risk profile. We track various KPIs such as the Sharpe and Sortino Ratio as well as employing Alternative Portfolio Theory to deploy and cutoff strategies once they begin decaying.

Are the systems guaranteed to profit?

NO! Nothing is guaranteed in the market. However, proper diversification between markets and systems can significantly increase the probability of success. Along with this, as mentioned before, we employ rigorous portfolio management methods in order to determine and attempt to forecast when a strategy may begin to underperform. In the case of a decaying strategy we ensure to shut it off as soon as possible and notify all users before any major losses are incurred.