Using Faster Bull to Build a Profitable Trading Strategy

In this post, I am going to describe how to use Faster Bull to build a profitable trading strategy.

When building a strategy, I typically first load the Faster Bull Interactive Chart to see if I can  visually spot any interesting patterns.  Looking at the chart of EWZ below,  the ETF had been in a significant down trend, followed by price consolidation ending with a big up day.  Continuing with my investigation, I click on the point of interest.

Faster Bull Interactive Chart

Clicking on the chart loads a new screen which contains conditions and all of the elements needed to build and backtest a strategy.  From there I can select which tickers to include in the backtest, the backtest date range, conditions to backtest and include the exit criteria.  An important feature to note here is that I can select conditions from multiple time frames.  This allows us to analyze multiple time frames in a single strategy!

Build and Backtest Strategy from Interactive Chart
Build and Backtest Strategy from Interactive Chart

The second half of the modal window includes the exit criteria configuration section for the strategy.  We can either analyze a range of different holding periods or simulate a stop and/or limit order in addition to a maximum holding period.  The “One trade per Ticker at a Time” check box tells Faster Bull to not allow trades of the same ticker to overlap, creating a more real world simulation.  Once all of the parameters are set, we can click the “Backtest Strategy” button.

Build and Backtest Strategy from Interactive Chart
Build and Backtest Strategy from Interactive Chart

The summary results of the backtested strategy are shown within the same modal window.  The benefit of this is we are able to toggle back to the strategy builder view we were just on, without having to reconfigure the strategy parameters or reload the chart.  Alternatively, we can click the “Expand the Data” button to see a more detailed analysis.

Summary Results
Summary Results

After clicking the “Expand the Data” button, we are redirected to the Backtest Results page where we can see the strategy parameters used for the backtest, detailed backtest results and the trades included in the backtest.  Also included are stop and limit values which could be used to place actual orders through your broker.  Any trades that have not been closed will be marked as Open.  From this page, we can either return to the Interactive Chart of click the “Revise/Save Strategy” button which will take us to the Strategy Builder page.

Backtest Results Page
Backtest Results Page

Once on the Strategy Builder page, we can remove or add conditions from our strategy,  change other parameters for our strategy,  load predefined strategies or save our current strategy (saving strategies requires a free membership).

Strategy Builder
Strategy Builder

Still on the Strategy Builder page, Faster Bull knows that this particular strategy originated from the chart, so by default, conditions are shown that are true for the click date used to build the strategy.  Note that Daily, Weekly and Monthly conditions are available to add to the strategy.  Click the “Show All Conditions” button to see all of the conditions available for use.

Strategy Builder
Strategy Builder

Stay tuned for more features coming to Faster Bull in the near future which include:

  • a scan page to find signals for your saved and predefined strategies
  • ability to compare backtest results against a selected benchmark ticker
  • ability to create and backtest a relative strength rotation strategy
  • ability to create a portfolio of strategies which can be backtested together


The Release of the Faster Bull Beta!

After much anticipation, the Faster Bull Beta has been released! Below are the features included in the Beta release.

Current Features

  1. A demo version of the product which does not require a login and supplies five years of available data for the SPDR S&P 500 ETF (SPY).
  2. A membership version of the product (FREE) which includes all available data for the SPDR S&P 500 ETF (SPY).
  3. The ability to analyze predefined patterns and conditions specific to a particular click point on a chart or through creating a scan on the find signals page.
  4. Analyze multiple time frames in a single scan.
  5. Create custom holding period ranges to determine the optimal holding period for a particular scan.

If you haven’t done so already, create a FREE membership account so you can be alerted to updates to Faster Bull and take advantage of the added features included with becoming a member. Below are some of the features you can expect in the very near future with more features to follow.

Coming Very Soon Features

  1. Tickers for cash Indexes and ETFs will be available for analysis.
  2. Expanded Condition and Predefined patterns list.
  3. Event analysis (Day of week, Month of year, Holidays, etc).
  4. Expanded exit criteria to simulate stop/limit orders as well as technical criteria.

We look forward to receiving feedback from users, especially while Faster Bull is in Beta. Your feedback will have a direct impact on the development of the product.

The Faster Bull Team

An Introduction to Faster Bull

Welcome to the Faster Bull blog! I wanted to take a moment to describe the genesis of Faster Bull and what you can expect from the product in the coming months.

About a year ago I was discussing with a friend (now business partner) how the financial market analysis products I was demoing were either inadequate for the level of back testing I wanted to do or the price was way to expensive. Both of us being programmers, he suggested we build a product and make it available to the public. Knowing what I needed in terms of back testing, we came up with a feature list that we feel fills a void in the market place today at a price point that is affordable for both the institutional and retail trader/investor.
This is what I wanted in a product:

1. The ability to backtest multiple time frames for a particular ticker.
2. Support tickers on the worlds major Futures exchanges in addition to ETFs and Indexes.
3. Cross ticker analysis (i.e. what does the DJIA typically do next when the DJIA is down big but Gold and Oil have a big up day?)
4. The ability to easily add Market Events such as Holidays or meeting dates of the FOMC.
5. The ability to select a point on a chart, and have statistics (i.e. Day is Tuesday, Close 20% less than 200 day moving average, etc.) load based on that point in time. The product will allow me to select which statistics I want to use for backtesting.
6. The product would also need to show what the optimal holding period is in addition giving the ability to create custom exit criteria.
7. Support for mobile devices.

As our team grew and we began working on the product, we realized it was really two products. The framework that provides the back end technology: Quantscanner, and the front end website which provides access to Quantscanner technology in a unique and efficient way: Faster Bull!

Thanks for reading and check back often as we have videos shortly to follow along with the official launch of Faster Bull happening in January 2013!

Oh, and did I mention that we are going to have a free demo that is going to offer some serious value!

Stay tuned!!

Periodic Thoughts on the Markets, Multiple Timeframe Analysis, Interactive Charts, and More