In the article “How to develop, test and optimize a trading strategy – complete guide” the authors from the Milton Financial Market Research Institute state the process to develop a algorithm for trading (we don’t distinction between a human deployed algorithm of read filings -> make a decision from an automated strategy that does the same) is as follows:
In science, historically there has been no ability to backtest. If you want to know what happens when you mix two unknown chemicals together you adorn proper safety gear (if you have it – Madam Curie famously skipped this step) and just mix them – often to dramatic effect. Sometimes you get Tylenol. Sometimes you get scorched Earth. Being scientists and engineers by training and mentality we chose a more direct process.
Because of this, we take on the psychological burden of the unknown – just like you do. We bear the losses in real-terms; not theoretical terms – just like you do.
We don’t have sponsorships or affiliate relationships with DMAs. We don’t offer promotional services. We do not have an introductory broker arrangement, we don’t run ads. We don’t claim to trade.
We run live accounts.
We use the same code the Gravity Analytic’s Mission Control exposes to subscribers.