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AlgoTrade Introduces AlphaScan; An Innovative Trading Tool for BackTesting

Chicago‐based software development firm, AlgoTrade, LLC, has announced the introduction of their new trading tool, AlphaScan. This backtesting application is integral to any algorithmic infrastructure, allowing users to evaluate their strategies against real-time or historical data without the risk of trading live.

“AlphaScan offers firms the flexibility to confirm the past performance of their automated systems,” explains Managing Director Gene Koziarz. “The customizable features and robustness offer strategists the testing returns required for success.”

The architecture is designed to use intraday bid/ask prices to backtest short-term models as well as longer overnight strategies. AlphaScan contains its own tick server that can read varied sources of market data, which is then normalized to provide optimal outcomes. This provides support for complex messaging structures such as time series, event and bar interval data. AlphaScan’s combination of data sets with varied granularity and frequency allows for the most concise and complex event driven analysis available.

Additionally, AlphaScan utilizes brute force optimization to generate more detailed results. This advanced technique is used to examine every possible combination of market variables that may affect profitability. These conclusions are then fully customizable to the client’s liking – delivered in CSV, SQLite or SQL server formats.

“Backtesting is quickly becoming a critical cog in a firm’s application toolset. Not only can it be used to test the validity of freshly minted ideas, but it also plays a large role in the perpetual optimization of existing strategies.” says Mike Persico, Founder of AlgoTrade. “AlphaScan fills this vital need perfectly by virtue of its agnostic stance towards the disparate market data sources that exist, as well as its universal compatibility with in-house and proprietary software packages.”

AlphaScan’s flexibility and wide range are tied together in a powerful interface that provides full control and robust test functionality. As an added benefit, the tester has the option of harnessing the power of distributed computing in a cloud or grid environment. A key differentiator of AlphaScan is that once a trading model has been validated from a profitability standpoint, customers can then utilize the same platform to execute live orders— eliminating the redundancy of coding into both a backtester and an order entry application.