Build Your Strategy
Create automated trading strategies using natural language conversations. Transform ideas into systematic trading systems.
How Strategy Construction Works
1
Define Your Trading Idea
Start with observations such as “stocks making new highs often keep trending” or “quality stocks sometimes bounce back after dips.”
2
Create Entry and Exit Rules
Define conditions for when to buy and sell using technical indicators, price levels, or market conditions.
3
Add Risk Management
Include position sizing, stop losses, and portfolio-level rules to help manage exposure.
Strategy Types
Trend Following
“Buy stocks breaking 52-week highs with strong volume.” Designed to follow major market moves.
Mean Reversion
“Buy blue-chip stocks when they drop 10% from recent highs.” Often applied in sideways or choppy markets.
Pairs Trading
“Trade Coke vs Pepsi when their price ratio is extreme.” A market-neutral approach focused on relative pricing.
Dividend Growth
“Buy dividend stocks that raised payments 5 years straight.” Designed to combine dividend exposure with equity appreciation.
Entry and Exit Rules
Entry Signals
Combine 2–3 confirming signals: “Buy when 20-day MA crosses above 50-day MA AND volume is 20% above average.”
Exit Rules
Define exits clearly: “Take profit at predefined levels. Stop losses at fixed thresholds. Use trailing stops to manage winners.”
Time-Based Exits
Limit holding periods: “Close all positions after 10 days” or “Exit before earnings announcements.”
Risk Controls
Apply risk parameters: “Use ATR-based stops. Limit exposure per trade.”
Testing Your Strategy
1
Backtesting
Test your strategy on historical data to see how it might have behaved over the past 3–5 years.
2
Performance Analysis
Review metrics such as win rate, average return, drawdowns, and risk-adjusted outcomes.
3
Market Condition Testing
Evaluate your strategy across different environments: bull, bear, and sideways markets.
Example Performance Metrics
Win Rate
The percentage of trades that closed profitably. Indicates how often the strategy generated winning outcomes.
Risk-Adjusted Returns
Metrics like the Sharpe ratio compare returns relative to volatility or risk taken.
Maximum Drawdown
Measures the largest portfolio decline from peak to trough. Helps understand downside risk.
Get Started
Launch Strategy Builder
Create your automated trading strategy using natural language. Tell our AI your ideas and it will structure them into systematic rules.
Next Steps
Beginner Strategies
Explore strategy templates designed for new traders.
Technical Indicators
Learn about RSI, MACD, moving averages, and other indicators for your strategies.
Backtesting
Understand how to test your strategies on historical data before going live.
Risk Management
Learn how to integrate position sizing, stop losses, and risk controls into your strategies.
⚠️ Trading involves risk, including the possible loss of capital. eZorro does not guarantee profits or eliminate the risk of trading losses.