Strategy Writing Guidelines

Learn how to write effective trading strategies that our AI can understand and convert into backtestable code.

What Makes a Good Strategy?

A good trading strategy description includes three key elements:

  • Clear Entry Conditions
    Specify exactly when to buy (e.g., "Buy when RSI drops below 30")
  • Clear Exit Conditions
    Specify when to sell (e.g., "Sell when RSI rises above 70")
  • Specific Indicators
    Name the technical indicators you want to use (RSI, MACD, Moving Averages, etc.)

Good Examples

✓ Example 1: RSI Mean Reversion
• Buy when RSI drops below 30 (oversold condition)
• Sell when RSI rises above 70 (overbought condition)
• Use 14-period RSI
• Risk exactly 1% of equity per trade
✓ Example 2: Moving Average Crossover
• Buy when the 20-day moving average crosses above the 50-day moving average and the RSI is below 70
• Sell when the 20-day moving average crosses below the 50-day moving average or when the RSI goes above 80
• Use a stop loss of 5%
✓ Example 3: MACD Trend Following
• Buy when MACD line crosses above the signal line
• Sell when MACD line crosses below the signal line
• Use standard MACD parameters (12, 26, 9)
• Risk exactly 1% of equity per trade

Common Mistakes to Avoid

Too Vague
"Buy when the price goes up and sell when it goes down"
Problem: No specific indicators or thresholds mentioned.
Missing Exit Conditions
"Buy when RSI is below 30"
Problem: Doesn't specify when to sell.
Unclear Indicator Parameters
"Use moving averages to trade"
Problem: Which moving averages? What periods? What crossover conditions?

Supported Technical Indicators

Our AI understands these common technical indicators:

📊
RSI
Relative Strength Index
📈
MACD
Moving Average Convergence Divergence
📉
SMA/EMA
Simple/Exponential Moving Averages
🎯
Bollinger Bands
Volatility indicator
⚡
Stochastic
Momentum indicator
💨
ATR
Average True Range

Quick Tips for Success

  • Be Specific with Numbers
    Use exact values (e.g., "RSI below 30" not "low RSI")
  • Use Standard Terminology
    Stick to common indicator names that traders recognize
  • Include Risk Management
    Mention stop losses, position sizing, or risk percentages if desired
  • Write in Bullet Points
    Organize your strategy with clear bullet points for better readability

Ready to Create Your Strategy?

Now that you know the guidelines, head back to the app and describe your trading strategy!

Open Backtest