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Tradesignal: How Energy Traders Can Build and Execute Systematic Strategies

Traders are always on the lookout for information that will give them an edge. Many traders speculating on commodities and other instruments use technical analysis. This uses charts and graphs to analyse patterns in market data to predict future trends.

How Can Energy Traders Get That Extra Edge?

Technical analysis can help make trading as profitable as possible by studying decision-making criteria such as past price patterns, trends, and volume to construct charts in order to determine future movement. We look at how traders can best benefit from the integration of technical chart analysis into electronic trading solutions.

Step 1: Data Visualisation

In terms of analysis, as we are visual creatures, it is crucial that traders have the ability to easily visualise the data available. The resulting information can either enhance an existing trading strategy or provide inspiration in order to conceptualise additional strategies. 

Step 2: Testing

Another essential step is to then have the capability of not only being able to test these ideas, but to test them in a robust manner. Ideally, tests need to be repeatable in order to gain a better understanding of the resulting information; as such, each iteration will inform the next version of the idea. 

Step 3: Understanding The Signals

This is where a sophisticated analysis tool comes into its own. By tapping into the combined capabilities of Trayport’s Joule electronic trading platform integrated with Tradesignal’s technical analysis software, traders can implement advanced trading strategies. This is done by pinpointing a number of indicators that can produce both ideas and signals for systems, from which a strategy can be in turn created. Subsequently, signals originating from that strategy can be optimised, thereby allowing improvements or reiterations. In addition, individual indicators can also be tested in terms of robustness. 

Step 4: Optimisation of Strategies

Ultimately, software supporting in-depth technical analysis and signal generation allows traders to enable rule-based trading strategies and implement technical analysis. By integrating such software with Trayport’s Joule and autoTRADER means that traders can better build and execute algorithmic and systematic strategies.

In the spirit of visualising the data, conceptualising an idea from the data, and optimising the signals of the data, Trayport is very excited to provide you with a workspace which can analyse a customised market response in order to find those vital, edge-worthy signals.


Visualise, Conceptualise, Optimise

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Jack Tierney
Senior Systematic Trading Consultant