Spezifikation
Trading idea
Describe the general underlying idea in the first part of the Requirements Specification. Example: "If the price approaches the resistance level twice and rolls back from it, the next time it is likely to break resistance." Here you can add a chart with the resistance/support lines, indicators and explanatory notes. Exact numbers or calculation algorithms are not required in the idea description. So, in this example we do not need to explain how to determine:
- resistance level,
- level breakout,
- the concept of "is likely to".
Some abstraction at the initial stage will help focus on the idea rather than on technical details. This way you can generate multiple modifications of your trading strategy by replacing or combining strategy blocks, indicators and filters. With the common general idea, you will use different input parameters for your trading robots.
Next, you need to describe all terms and concepts contained in the idea description. If trend is important for your strategy, clearly define what indicator should be used to determine the trend direction and strength. The numerical characteristics of these definitions form the basis of Expert Advisor's input parameters, and can be optimized in the Strategy Tester. So, the first section of the Requirements Specification is "The Trading Idea".
Terms and definitions
It is recommended to create a separate section in the Requirements Specification for explaining related terms and definitions. Explain terms in separate paragraphs. Use bold font to highlight the key concepts of your trading strategy. Where applicable, you may add an image. Input parameters of the desired EA can be written in italics.