Quantitative Tools for All
At Quant-Orbis, we believe that every market participant deserves powerful tools to turn their insights into action, whether you are a trader, researcher, or risk professional. Our backtesting and optimization tools are designed to empower you to test and refine your trading strategies with precision and confidence.
With our advanced quantitative tools, you can explore the effectiveness of your strategies, optimize them to perfection, and uncover insights that drive your trading decisions. While our current suite of tools is just the beginning, we are committed to evolving and expanding based on your feedback. Your insights are invaluable in helping us shape a platform that truly meets your needs.
We are excited to be part of your trading journey and look forward to growing with you. Here’s to making informed decisions, mastering strategies, and achieving new heights in your trading success!
Understanding Backtesting, Synthetic Data Testing, and Forward Live Testing
Backtesting with Historical Data
Backtesting involves running a trading strategy on past market data to evaluate its performance. It is a crucial step in strategy development but comes with its own set of advantages and limitations.
- Pros: Leverages real market data, identifies historical performance trends, helps optimize strategy parameters.
- Cons: Past performance does not guarantee future results, risk of overfitting to historical data, data integrity issues.
Testing with Synthetic Data (Coming Soon)
Synthetic data testing uses artificially generated data to simulate various market conditions, including rare events, to assess strategy robustness.
- Pros: Simulates extreme market conditions, identifies strategy weaknesses, avoids overfitting to real data.
- Cons: May not perfectly reflect real-world scenarios, generating accurate synthetic data is complex.
Forward Live Testing (Coming Soon)
Forward live testing, also known as paper trading, applies a strategy in real-time without financial risk, providing insights into how the strategy performs under live market conditions.
- Pros: Provides real-time feedback, gauges strategy execution under live conditions, builds trader confidence.
- Cons: Time-consuming, does not account for emotional aspects of real trading, absence of real financial risk.
Throughout your journey, we will share with you indicators and metrics that are less mainstream, starting with this section.
The Hurst Exponent
The Hurst exponent is a measure of the long-term memory of time series data. It helps traders understand whether a market is trending, mean-reverting, or behaving randomly. A Hurst value greater than 0.5 indicates a trending market, less than 0.5 suggests mean-reversion, and around 0.5 implies a random walk. Learn more about the Hurst Exponent.