With the objective of designing and developing an intelligent systematic trading system leveraging the fundamentals of investing, data visualisation and automation, we have developed the prototype of our trading system in 3 phases: Design, Development & Test and Deployment.
To design portfolio visualisation and configure customised dashboards for our users, we adopted a design thinking process to better understand our users’ journey in using some online financial platforms in the markets. Some of the challenges faced by our users in using these online platforms include: Current interface of some financial platforms is not user-friendly Payment required for subscription of premium services Trading process is manual and require human intervention to make predictions Data analysis is limited in terms of types of analyses Too many instruments in financial markets, so users find it difficult to decide what strategy to use for which equities. Lack of knowledge in risk management
To develop smart trading algorithms to leverage several strategies of output and trade, 11 strategies — using sentiment, technical and fundamental analysis — were developed for decision making and predictions for investing in different equities in financial markets. A period of 20 years (1 January 2001 to 31 December 2020) of historical data together with different parameters were used for backtesting in QuantConnect. The Modern Portfolio Theory (MPT) framework was also adopted to achieve optimal performance in our strategies and to maximise returns for our traders or investors.
To address the issues raised by our users, we have successfully deployed the prototype of our trading system by integrating the smart trading algorithms (developed using QuantConnect) with the portfolio visualisation, dashboards, and reports (designed using PowerBI). Our prototype offers the flexibility to connect to many sources such as APIs, brokers, news or data to provide timely information; including the ability to manage and proportion individual equities and strategies to form a balanced and comprehensive portfolio of low & high risk, long & short-term trades/investments. Our customised dashboard also provides weightage recommendations. Overall, our prototype is accessible and convenient to use anytime anywhere, provides timely information and offers flexibility in its design at an affordable rate.