Marko Nikolic Investment Research
Marko Nikolic
Investment Research

Marko Nikolic software is highly customizable and versatile. It can be configured to work with any market, time frame, and chart type. Although this configuration process is relatively easy, quick, and intuitive, some traders prefer that we configure the software for them. Customized configuration comes in form of market templates - software-specific, preconfigured files that user loads within their platform. All template development, configuration, optimization, and testing (back and forward, in and out of sample) is performed by Marko Nikolic himself. He developed the products and comprehensively understands how they operate and behave, right down to algorithmic subroutines.

The template development process typically follows the following workflow:

  1. Objective: The client explains what it is they are looking to trade: the target market, term outlook (time frame), chart type (bar, tick, renko, point-and-figure etc.), strategy type (trend, scalp etc.), and risk appetite.
  2. Qualification 1: Marko Nikolic references his database of existing templates to find any related configurations. If there is a match, these templates are immediately qualified and forwarded to the comprehensive back and forward-testing process (step 5).
  3. Qualification 2: If no match exists, Marko Nikolic references a spectrum of his asset class templates (configurations common to market groups such as technology stocks, precious metal futures, volatile currency crosses) to find the most suitable match.
  4. Drilling down: Once a suitable match is found, it is broken down into an array of individual, varyingly configured templates, which are then briefly tested for potential. The best performing configurations, typically the top quartile, are selected and forwarded to comprehensive back and forward-testing.
  5. In-depth back-testing: The qualified templates are extensively back-tested on deep historical data. Based on client input, appropriate transaction fees (commission, spread) and slippage are added to ensure realistic performance results. Top 1-3 performing templates are selected.
  6. Forward testing and optimization: To ensure templates perform well in hindsight and future, they are forward tested. This process works on basis of taking historical data and dividing it in 2 parts. The first data chunk is used to back-test template configurations (in sample testing), while the second is used to simulate real-time trading on "unseen" market action (out of sample testing). Since the template wasn't back-tested on the second part of data, it encounters the price behavior within it for the first time and hence reliably models the template behavior within a live trading type scenario. Parameter optimizations are implemented based on performance metrics. Forward testing utilizes both exhaustive (for few parameters - checks all permutations), genetic (for many parameters - multi-generational selection), and proprietary methods.
  7. Release and validation: The optimized template is sent to the client who then tests it either on simulated (demo) account or funded with small lot sizes. If client is satisfied with performance, the development is complete, otherwise step 6 is repeated.

Actual examples of optimized templates:

PivotBuilder Personal Trading Suite optimized to target E-mini S&P500 futures intraday bull trend

Specifics: 4-min chart, 2x PivotBuilder strategy add-ons, long positions only (LE, LX), simultaneous positions, commission: $2.34/contract, slippage: $12.50/contract

PivotBuilder optimized to target EUR/USD intraday swings

Specifics: Kagi chart, 4x PivotBuilder strategy add-ons, short and long positions (LE, LX, SE, SX), simultaenous positions, spread: 2 pips, slippage: 2 pips

PivotBuilder Walk-Forward analysis for S&P 500 Futures (CME: ES) - client "Stuart"

Walk forward Cluster Analysis

Out-of-Sample Walk forward Summary

Test Results

Distribution Analysis

Sensitivity Analysis

Equity Graph

Template development and optimization is handled with client's privacy in mind - first and foremost. If client so desires, Marko Nikolic will sign a non-compete, non-disclosure agreement.

Inquiries and requests can be submitted through our contact page. Please provide as many details about your target market and/or strategy as you feel comfortable.

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