Is it possible to reverse engineer a strategy using monte carlo or other methot except brute force?

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Mrluck07
426
Mrluck07  
Hi, i have a question about security, for example, if someone has a trading strategy with 5 indicators, out of more than 10000 indicators found on metatrader, the different brute force combinations for testing are 832500291625001500, (according to numberempire com) which even the fastest computers in the world would take ages to brute force all combinations, but then i question, if a person has the trading history only, the buy and sell times, is it possible to discover the strategy using reverse engineering with some approximation method and get exactly the original trading system? Thanks
Marco vd Heijden
Moderator
8445
Marco vd Heijden  

Yes.

You would not find the exact indicators, but the strategy as a set of equations.

The only question would be WHY.

You are so far in over your head it just makes me nod my head for no apparent reason, automatically.

You could instead use those resources to train an autonomous AI trader...
iRick
156
iRick  
Mrluck07:
Hi, i have a question about security, for example, if someone has a trading strategy with 5 indicators, out of more than 10000 indicators found on metatrader, the different brute force combinations for testing are 832500291625001500, (according to numberempire com) which even the fastest computers in the world would take ages to brute force all combinations, but then i question, if a person has the trading history only, the buy and sell times, is it possible to discover the strategy using reverse engineering with some approximation method and get exactly the original trading system? Thanks

I would think if they have the resources and intelligence to reverse engineer a trading system from the history then I doubt they need to

Mrluck07
426
Mrluck07  
Marco vd Heijden:

Yes.

You would not find the exact indicators, but the strategy as a set of equations.

The only question would be WHY.

You are so far in over your head it just makes me nod my head for no apparent reason, automatically.

You could instead use those resources to train an autonomous AI trader...

Why? Because if you can use approximation formulas, you don't need many resources or long time, for a broker to find the best strategies would be very easy, just seeing the trading history, i was under the impression that it wasn't possible, thanks for explaining

iRick:

I would think if they have the resources and intelligence to reverse engineer a trading system from the history then I doubt they need to

It's possible to exploit it, for example, with everybody who is winning, and get their strategies, using little energy and time

Marco vd Heijden
Moderator
8445
Marco vd Heijden  
Mrluck07:

Why? Because if you can use approximation formulas, you don't need many resources or long time, for a broker to find the best strategies would be very easy, just seeing the trading history, i was under the impression that it wasn't possible, thanks for explaining

It's possible to exploit it, for example, with everybody who is winning, and get their strategies, using little energy and time

You really think that brokers are after their customers strategy's ?

Man man man.... 

It never ends.

What's next ?

Let's hear it.

Ivan Negreshniy
17671
Ivan Negreshniy  
Mrluck07:
Hi, i have a question about security, for example, if someone has a trading strategy with 5 indicators, out of more than 10000 indicators found on metatrader, the different brute force combinations for testing are 832500291625001500, (according to numberempire com) which even the fastest computers in the world would take ages to brute force all combinations, but then i question, if a person has the trading history only, the buy and sell times, is it possible to discover the strategy using reverse engineering with some approximation method and get exactly the original trading system? Thanks

Purely technical answer - yes, it is possible, especially if all the indicators are based only on price data from the current chart.

There are tools that can automatically generate the MQL source code (EA or Indicator) using the visual trading report of any strategies (test reports of trial version EAs from market service or the chart of trades from the signal service etc).

It does this by unique algorithms to analysis of the history of quotes and trade transactions using various machine learning methods.

But there may be problems when indicators use external data, such as fundamental analysis or when EA use sophisticated methods of money management.

Minions Labs
1757
Minions Labs  
Mrluck07:

Why? Because if you can use approximation formulas, you don't need many resources or long time, for a broker to find the best strategies would be very easy, just seeing the trading history, i was under the impression that it wasn't possible, thanks for explaining

It's possible to exploit it, for example, with everybody who is winning, and get their strategies, using little energy and time

Man, do you really think that your broker is after your strategy??  If they want to do that, and in the US you have several of them doing it, they just front-run you, they don't need to know why you are buying or selling.  Did you ever hear about HFTs and Dark Pools?

Since there are no Holy Grails, nobody will care about stealing your strategy.

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