For several years, Satelys has been collaborating with Build Alpha, a strategy optimization platform based on the standards of excellence used by institutional investors.
Build Alpha is an advanced platform designed for demanding investors looking to develop and test trading strategies with professional rigor. By combining technologies such as artificial intelligence, stress tests, and anti-curve fitting techniques, Build Alpha enables us to build solid strategies ready to face real market conditions.
IN-SAMPLE VS OUT-OF-SAMPLE
A key element in the design of trading strategies is avoiding curve fitting. Build Alpha incorporates a rigorous process of data separation into in-sample (seen data periods) and out-of-sample (unseen data periods).
- In-Sample Periods: Build Alpha uses in-sample data to construct and optimize strategies, adjusting parameters to maximize performance on this pre-known data set.
- Out-of-Sample Periods: Once optimized, strategies are then tested on out-of-sample data—data that was not seen during the optimization phase—to assess their real-world performance.
This simple yet often neglected approach among retail traders helps mitigate the risk of over-optimization, ensuring our strategies remain resilient to unknown data and improving result reliability across various market conditions.
TECHNICAL FEATURES
- Artificial Intelligence (AI)-Powered Research: Using a genetic algorithm, Build Alpha automates the search for strategies, exploring a vast range of parameter combinations to identify robust and unbiased configurations.
- Advanced Robustness Testing: The integration of Monte Carlo simulations, variance testing, and noise testing helps assess a strategy’s resilience to extreme market fluctuations. These tools, borrowed from hedge fund methodologies, help evaluate each strategy’s durability under stressful scenarios.
- Custom Data Import: Import your own datasets to refine analyses and develop tailored strategies based on various assets.
- Multi-Strategy Portfolio Creation: Diversify and optimize investments by combining multiple strategies into integrated portfolios, reducing risk and stabilizing overall performance.
- Direct Code Export: With one click, export strategies to trading platforms such as PRT, TradeStation/MultiCharts, NinjaTrader, and MetaTrader for fast and flexible deployment.
BUILD ALPHA IN PRACTICE
As part of our partnership with Build Alpha, we offer you a lifetime license at a preferential price (including all future updates). To take advantage of this offer, click here.