Strategy Designer
Available for Premium and Professional users
StockHero's latest revolutionary Strategy Designer allows a trader to create complex strategy easily. A complex strategy can also be loosely called a MultiStrat in the hedge fund world. Multiple strategies are combined to create an overarching strategy. For example, a long-short strategy is considered MultiStrat as it consists of a long followed by a short strategy, with each executing consecutively.
StockHero's Strategy Designer offers advanced traders the ability to create complex strategies that capture a greater part of the market movement. For example, a trader can create a long-short strategy using our Strategy Designer.
The actual implementation is via Daisy-Chain in StockHero. The Strategy Designer is only available for Advanced bot type.
Let us illustrate with an example on how to implement a Long-Short MultiStrat strategy.
- User creates Bot X (Advanced Bot) for Long strategy
- User creates Bot Y for Short strategy
- User configures Bot X to activate Daisy-Chain and also the "First in Daisy-Chain" option. When enabled, bot X will start to run after it is created. See picture below.
(Advanced Bot X settings)
- User sets Bot Y to activate Daisy-Chain but "First in Daisy-Chain" is NOT enabled. When bot Y is created, bot Y will NOT run. Its trigger is from Bot X as we will see below
- User sets bot X exit condition to trigger bot Y after X completes a deal. Similarly, Bot Y's exit condition has been set to trigger Bot X after Y completes a deal
- After X and Y are created, only X will run and monitor the market
- Bot X completes a deal and X sends trigger to Bot Y. X will NOT auto-restart. X will be deactivated
- Bot Y activates and monitors the market
- Bot Y completes a deal and triggers Bot X
- Bot X "wakes up" from its deactivated state and start to run. The whole cycle repeats.
As shown in the example above, a user has successfully created a Long-Short strategy.
A user can link two or more bots in a daisy-chain as well.
[Bot A] > [Bot B] > [Bot C] > ….. > [Bot Z]
If the LAST bot Z has NO trigger condition in the EXIT condition, the whole strategy (Bot A to Z) will only run once. But, if Bot Z Exit Condition has a trigger to Bot A, then the whole strategy repeats. I.e. Bot A will “wake up” and start to monitor the market.
StockHero's Strategy Designer is like a 4GL programming language for automated trading. A trader can create multiple bots, each with its own condition in order to create a single wholistic strategy. It is really up to the trader's expertise and imagination on what complex strategy to setup using the Strategy Designer.
Three bots MultiStrat
Bot A | Bot B | Bot C | |
Entry Condition | Activate Daisy Chain = True First = True | Activate Daisy Chain = True First = False | Activate Daisy Chain = True First = False |
Exit Condition | Trigger B | Trigger C | Trigger A |
Above strategy will cause the following sequence: A > B > C > A > B > C > (repeats)
Bot A will activate on creating/updating since Activate Daisy-Chain = True AND First=True
Bot A | Bot B | Bot C | |
Entry Condition | Activate Daisy Chain = True First = True | Activate Daisy Chain = True First = False | Activate Daisy Chain = True First = False |
Exit Condition | Trigger B | Trigger C | Trigger B |
Above strategy will cause the following sequence: A > B > C > B > C > (repeats)
You can see that Bot A is only run once as no other bot triggers Bot A.
Bot A | Bot B | Bot C | Bot D | |
Entry Condition | Activate Daisy Chain = True First = True | Activate Daisy Chain = True First = False | Activate Daisy Chain = True First = False | Activate Daisy Chain = True First = False |
Exit Condition | Trigger B | Trigger C | Trigger D | Trigger A |
Above strategy will cause the following sequence A > B > C > D > A > (repeats)
Bot A | Bot B | Bot C | Bot D | |
Entry Condition | Activate Daisy Chain = True First = True | Activate Daisy Chain = True First = False | Activate Daisy Chain = True First = True | Activate Daisy Chain = True First = False |
Exit Condition | Trigger B | Trigger C | Trigger D | Trigger A |
Above strategy will cause bots A and C to be activated together.
Sequence: A > B > C > D > A > (repeats)
What if Bot C activates BO first?, then, it will look like
C > D > A > B > C > D > A > (repeats)
Hence, there is a danger of “race condition” (in computer science where two resources compete for the same resource X) if a user sets two bots as First=True in a single daisy-chain.
So if a Bot X calls another bot Y to activate and Y is already active, X will become deactivated (as per normal like a daisy-chain bot) but an error message will appear “Attempt to call an active bot in the daisy-chain”. HOWEVER, X can still be activated again if another bot triggers X as part of the daisy-chain.
Multiple daisy-chains can be created as well such that each chain of bots are mutually exclusive.
Daisy-Chain linking can also be activated for TradingView signals.
Whenever a signal is received and if the bot has daisy-chain enabled, StockHero will check if the bot is "First in Daisy-Chain". If yes, the bot will execute a trade. If not, the bot will check prior linked bot to see if it has already completed a deal. If yes, the bot will execute a trade, else it will do nothing.