Portfolio Boss Documentation

Trade Signals Tab

 

 

This Panel lists the trading signals generated by the strategy on the latest backtest date (usually the current date). These trading signals are also sent to you via email/text when the strategy is finally put to use. If there's no trading signal, this Panel will be empty.

This Panel is located at the Center Area of the “Backtest Strategy” Page.

 


 

1.  Trading signals include the “Buy” and “Sell” signals due to stop-loss and switch-day, as well as “Hold” signals for keeping the Positions. 

 

 

Sometimes there will be an “Additional Buy” signal, which tells you to add/increase that position's size (the sold Position is replaced with an existing Position, thus increase the existing Position's size with the sold Position's liquidated fund).

 


 

2.  These trading signals are generated one trading day before the orders are supposed to be executed. So preferably, you enter these orders today when the signals are generated, and the broker will execute the orders tomorrow. 

 

 

If you're using a Periodically Switching strategy, trading signals mostly occur one day prior to the monthly switch-day (set on the “Monthly Switch on Open” parameter).

Other than the switch-day, trading signals are also generated if a Position hits a stop-loss (triggers a Sell Filter).

 

 

The description on top (when there are trading signals) is pretty self explanatory: if one of your positions hits the stop-loss (Sell Filter), it will say something like “The sell filter triggered a sell signal”. And if it's a switch-day, it will say “Switch day is here”.

 


 

3.  If you're using a Continuously Switching strategy, trading signals will be generated if the Positions hit the Sell Filter(s), since there's no such thing as a switch-day. 

 

 

Signals will also be generated if there are more profitable positions than the cash equivalent Positions (even if the cash equivalent Positions don't hit the Sell Filters).

 

 


 

4.  Keep in mind, trading signals are paired, that is, one Sell Signal will be accompanied by one Buy Signal. 

 

 

That's because a sold Position must be replaced with another Position (either another stock or a cash-equivalent bond), unless you don't park your liquidated money anywhere except in cash.

 


 

5.  If you click on the instrument's symbol (highlighted blue), you'll be taken to the Price Chart of that symbol (at the Instrument Tab), which shows you the Buy/Sell signals.

 

 


 

6.  Now, before you enter these signals to your broker, obviously you need to know how many shares to Buy/Sell. Simply click the “Trade Plan” button at the top of the page, and the Trade Plan Calculator opens. 

 

 

It calculates the amount of shares to trade, and the recommended times to execute the trades.

Note, you may not have access to this Calculator, depending on your license. Please contact our Customer Support if you wish to upgrade your license.

 


 

7.  Below all the trading signals, there's a “Top Ranking Instruments” section that shows the highest performing instruments at the current date, based on the Ranking Rules.

This list shows you the most likely candidates to become the new Positions once the old ones are liquidated (either due to a switch day, or hitting a Sell Filter). Or, if the instrument listed here is already held as a Position, you are more likely to keep it. 

 

 

It's possible that this list is empty, which could be that none of the instruments passed the Buy Filters. If that's the case, liquidated Positions from a continually-switching strategy won't immediately be replaced by another Position, but parked into cash/cash-equivalent instead. Once the list is populated again, the cash/cash-equivalent positions will be replaced with the top-ranked instruments here.

There are three columns in this section:

  • The “Rank” column ranks the instruments top to bottom, based on the Ranking Rules.
  • The “Symbol” column lists the instruments that may become the next signal. As usual, you can hover the mouse over the symbol to show its description tooltip, or click it to show the Price Chart (on the Instrument Tab).
  • The “Description” column shows the description for each instrument.

 


 

Notes:

 

  • If you're using Limit Orders (“N ATR Limit Order”), a limit price is displayed for each instrument here. Take these limit prices to your broker as well.

 

 

  • If you're using Short Position type, then the signals will change into “Short” (for selling-short the instruments), “Cover” (for buying back the instruments), “Sell” (for selling the cash-equivalent), and “Hold” (for keeping the current Positions).

 

 

  • Sometimes you may get a Sell Signal (or Cover) despite the Position not triggering any of the Sell Filters. This could be due to the instrument company (or fund) getting delisted from the exchanges (merger, acquisition, or plain ole Chapter 11).

 

 

 

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