SMTP Overview
- Basic strategy is to conduct long term experiments using clean data in a system known as PDCA (Plan-Do-Check-Adjust) in Six Sigma.
- Each experiment is written into Excel as an algorithm and allowed to “trade”. Results analysed automatically to identify improvements, then new algorithms created. New and old then run simultaneously to allow direct comparison.
- Same data and stock list is used for all algorithms, always.
- Two of the best performing algorithms (out of >1000) are used for active trading using owners’ funds ($135k) to establish a track record.
- Excel 2010 spreadsheets automatically control the entire process including data download, algorithm calculation, buy/sell decision-making, website updating etc.
- Spreadsheets perform multiple functions and have been designed to operate like a stand-alone application using timed macros and VBA.
- “Clean data” is used to make all calculations. Essential for analysing performance and predicting measurable gains in future algorithms.
- The need for decision making is completely eliminated.
