Custom Strategies

Create your own trading strategies with QuantsEdge's Strategy Lab.

Strategy Lab Overview

Build, test, and deploy custom strategies without coding.

Access: Strategy Lab in main navigation

Building Your First Strategy

Main Components

1. Entry Conditions - When to open positions, 2. Exit Conditions - When to close positions, 3. Risk Management - Position sizing and stops, 4. Indicators - Technical analysis tools

Creating Entry Rules

Logical operators: AND (all must be true), OR (any triggers), NOT (inverse)

Example entry:

IF (Price crosses above 20 EMA)
AND (RSI < 70)
AND (Volume > Avg Volume × 1.5)
THEN Open Long Position

Defining Exit Rules

Exit types: Take profit (price/%), stop loss (price/%), trailing stop, indicator-based, time-based

Example exit:

Exit Position IF:
- Take Profit: +3% from entry
- Stop Loss: -1.5% from entry
- OR RSI crosses below 30

Custom Indicators

Built-In Indicators by Category

Category	Indicators
Trend	MA (SMA, EMA, WMA), MACD, Parabolic SAR, ADX
Momentum	RSI, Stochastic, Williams %R, Momentum
Volatility	Bollinger Bands, ATR, Keltner Channels, Standard Deviation
Volume	Volume, OBV, VWAP, Accumulation/Distribution

Indicator Configuration

Each indicator has customizable parameters: Moving Average: Period (20 default), Type (EMA/SMA/WMA), Data source (Close/Open/High/Low), RSI: Period (14 default), Overbought (70), Oversold (30)

Combining Indicators

Example sophisticated signal:

Entry:
- 9 EMA crosses above 21 EMA
- AND MACD histogram positive
- AND Volume > 20-period average

Exit:
- Price touches upper Bollinger Band
- OR MACD bearish divergence

Position Sizing

Sizing Methods

Method	How It Works	Best For
Fixed Amount	Exact dollar amount per position	Simple, predictable
% of Capital	X% of total account	Auto-adjusts with growth
Volatility-Based	Larger in low vol, smaller in high vol	Market-adaptive
Risk-Based	Size to risk fixed amount per trade	Professional approach
Kelly Criterion	Optimal sizing from win rate/risk-reward	Advanced users only

Examples

Risk Management Rules

Stop Loss Configuration

Types: Fixed %, fixed $, ATR-based, support/resistance levels, indicator-based Trailing stops: Trail by %, trail by ATR, activate after profit threshold

Take Profit Strategies

Approach	Method
Single Target	Close entire position at one price
Multiple Targets	50% at +2%, 25% at +4%, 25% trail with 1% stop
Risk/Reward Ratios	Set TP as multiple of SL (e.g., 2:1 ratio)

Backtesting Custom Strategies

Configure Backtest

Required: Time period, trading pair, initial capital, commission/fees, slippage assumptions Optional: Market hours only, exclude volatile periods, max concurrent positions

Key Metrics

Visualization: Equity curve, drawdown chart, trade distribution, monthly returns heatmap

Optimization

Parameter tuning: Test ranges, find optimal values, avoid overfitting Walk-forward analysis: Test multiple periods, verify consistency, detect parameter drift

Strategy Templates

Quick Start Templates

Template	Entry	Exit	Position Size
Trend Following	Price > 50 EMA AND 20 EMA > 50 EMA	Price < 20 EMA OR -2% stop	2% risk
Mean Reversion	Price < Lower BB AND RSI < 30	Price > Middle BB OR +3% profit	Fixed $5,000
Breakout	Price > 20-day high AND Volume > 2x avg	Trailing 2x ATR OR -1.5% stop	Volatility-adjusted
Range Trading	Long at support + RSI < 35, Short at resistance + RSI > 65	Middle of range OR opposite signal	1.5% risk

Advanced Features

Multi-Timeframe Analysis

Daily: Trend direction (EMA)
4-Hour: Entry timing (RSI)
1-Hour: Exact entry (price action)

Market Regime Detection

IF Trending (ADX > 25):
  Use trend-following rules
ELSE IF Ranging (ADX < 20):
  Use mean-reversion rules

Custom Formulas

Custom Indicator = (Close - SMA(Close, 20)) / ATR(14)

IF Custom Indicator > 2:
  Strong bullish signal

Deploying Your Strategy

Pre-Deployment Checklist