ViableTrade
We developed a tool that assesses traders’ strategies for potential weaknesses, aiding in the enhancement of trading methods and increasing client lifetime value for the exchange. This product was incorporated into the exchange as a widget and is designed for web platforms using Python libraries and JavaScript for efficient interface operation and visualization.
**Challenge:** Many traders lose motivation and pause their activities after experiencing setbacks. Our client sought methods to boost customer engagement and lifetime value on their platform. To address this, we decided to introduce a forecasting tool to evaluate the vulnerability of traders' strategies.
**Solution:** The forecasting tool was implemented as a widget within the user profile, functioning as a trade simulator. Users can configure specific parameters, including:
- Timeframe
- Deposit
- Number of trades
- Average take profit
- Average stop loss
Using these parameters, users receive a forecast chart, an estimated probability of failure, and recommendations for achieving a targeted Sharpe ratio. To develop this tool, we gathered extensive data and established a comprehensive model, analyzing numerous trading strategies and the markets they pertain to, while applying statistical methods for financial modeling.
**Results:** We produced a tool that evaluates trading strategies for vulnerabilities, allowing the exchange to forecast when a client might leave based on their trading approach and to suggest improvements. Our client's team utilized our solution for data visualization and rapid hypothesis testing in alpha generation. The platform is now integrated within a larger industry leader, yielding remarkable outcomes.