Automatic Portfolio Management with zero management fees using Arcade Trader

Mutual funds are probably the easiest way to invest for people without a financial background. Statista Research Department reported that “In 2019, 46.4% of the households in the United States owned mutual funds.

First of all, what’s a mutual fund? “Mutual funds are investment funds managed by professional managers who allocate the funds received from individual investors into stocks, bonds, and/or other assets.” — Investopedia

This means the people behind mutual funds do all the work of research and analysis, while you just pay a small fee for their management. …

Hopefully, it was pretty cool writing your first algorithm strategy in Arcade, but now what? We need to backtest the strategy created in Part 1 of this series to see if we had any luck with other large-cap stocks.

So, let’s get started.

In the Strategy panel, find the strategy you created and click the button “Test” to be redirected to the backtesting page. (Note: you can also backtest patterns, which we will cover in another part of this series.)

Since it’s the first time you’re executing a test, you can’t copy the configuration from a previous test, so we’re going to create a new one. Just press “Ok” on the following popup:

Create a new configuration or use a previous one

Backtesting has a lot of available settings to ensure accuracy, but for our first run, we’re going to leave the defaults for pretty much all of them. …

Create your first algo trading strategy with Arcade Trader and Alpaca

NOTE: This tutorial has been modified on July 10th, 2020 to use the new “Natural Language” instead of Javascript. You will find a new tutorial about using Javascript soon.

If you’re an investor or a stock trader, it’s no secret that algorithms have replaced regular investors in terms of volume.

Why algorithms? Because while a person can follow maybe 4 stocks at the same time, algorithms can follow thousands of stocks and respond faster than a blink of an eye. Furthermore, they are committed to a defined strategy without any emotion. Yes, trading can be very emotional. Poor execution due to involved emotions can cause traders with otherwise successful strategies to fail. …


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