# Creating Your First Trading Strategy

**Last Updated**: 2026-03-17
**Version**: 1.0.0

## How It Works

### Open the Arena Workflow Builder

Navigate to the Arena page to access the workflow table interface where you define trading strategies using a visual grid-based builder with market conditions and execution steps.

### Define Market Conditions

In the first column of the workflow table, select trend or range market conditions using the multi-select dropdowns to specify when your strategy should activate.

### Configure Execution Steps

In the second column, define the execution steps that determine how trades are placed — including entry signals, position sizing, and exit rules for your strategy logic.

### Set Backtest Parameters

Configure the Execute section with your target stock or asset via company search, date range for historical data, timeframe granularity, initial capital amount, and order size.

### Select AI Model and Data Source

Choose your preferred AI model provider and data source from the available options to power the strategy's analysis engine and market data feed.

### Execute and Review Results

Click Execute to run the backtest. Results appear in the Perspective viewer showing equity curves, trade history, performance metrics, and risk analysis for your strategy.

> The workflow builder allows you to create trading strategies by combining market conditions with execution rules in a visual grid interface

## Tips & Best Practices

- Start with a single market condition and one execution step to understand the workflow before adding complexity — simple strategies are easier to debug and optimize

- Use at least one year of historical data in your backtest date range to capture different market cycles and validate strategy robustness across varying conditions

- Set realistic initial capital and order sizes that reflect your actual trading budget to get meaningful performance metrics from backtest results

## Frequently Asked Questions

### What is the difference between trend and range conditions?

Trend conditions detect directional market movements (uptrend or downtrend) using indicators like moving averages. Range conditions identify sideways or consolidating markets using indicators like Bollinger Bands. Your strategy activates when the selected conditions are met.

### How long does a backtest take to complete?

Backtest duration depends on the date range, number of conditions, and data granularity. A typical single-stock backtest over one year of daily data completes in 30-90 seconds. Longer date ranges or minute-level data may take several minutes.

### Can I add more rows to expand my strategy?

Yes, the workflow table supports multiple rows. Each row adds a new condition-action pair, allowing you to build complex multi-condition strategies that respond to different market scenarios simultaneously.

## Important Notes

> Backtesting results reflect historical performance only and do not guarantee future returns. Always apply proper risk management and only trade with capital you can afford to lose.

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Source: https://stratcraft.ai/help/first-strategy/