Composer Trade MCP: A tool to automate the creation and backtesting of trading strategies through AI

Composer Trade MCP is an open source trading platform plugin that allows users to quickly create, backtest, and execute trading strategies for stocks and cryptocurrencies by interacting with large-scale language models such as Claude through natural language. It connects AI and Composer trading platforms through the Model Context Protocol (MCP) to simplify complex trading processes without the need for programming skills. Users can build personalized portfolios (called "symphonies") using technical indicators such as RSI, MA, and EMA, and automate trading and dynamic adjustments. The platform offers a 14-day free trial for retail investors to explore quantitative trading, with core functionality free, but premium features requiring an API key and subscription.

Function List

• Supports rapid trading strategy generation by interacting with AI (e.g. Claude) via natural language.
• Provides a backtesting API that allows users to test a strategy's historical performance and compare it to a benchmark (e.g., the S&P 500).
• Supports multiple technical indicators (RSI, MA, EMA) to build personalized portfolios.
• Automated execution of trades, dynamic monitoring of markets and automatic portfolio adjustments.
• Offers over 1,000 off-the-shelf strategies that users can invest in directly or customize.
• Diverse trading assets supporting stocks and cryptocurrencies.
• Provides real-time performance monitoring of accounts and strategies.
• Allow users to share and community exchange self-built strategies.

Using Help

Installation process

To use Composer Trade MCP, users need to install Claude Desktop and ensure they have a Claude Pro or Max plan. Below are the detailed installation steps:

1. Installing Claude Desktop::
   • Download and install Claude Desktop from the official Anthropic website.
   • Make sure the system meets the requirements (e.g., Windows or macOS).
2. Installing the Composer MCP Extension::
   • Open Claude Desktop and go to Settings > ExtensionsThe
   • strike (on the keyboard) Install ExtensionSelection composer-trade-mcp.dxt file (downloadable from https://github.com/invest-composer/composer-trade-mcp).
   • If you need advanced features (such as trade execution), add the Composer API key in the Extended Settings. To get the key, create an account at https://www.composer.trade and log in.
3. Configuration environment::
   • Installing the Python Package Manager uv, run the following command:

     curl -LsSf https://astral.sh/uv/install.sh | sh
     

   • Open the Claude Desktop configuration file at the path Settings > Developer > Edit Config > claude_desktop_config.jsonThe
   • Add the following to enable Composer MCP:

     {
     "command": "uvx",
     "mcp_server": "composer-trade-mcp"
     }
     

   • in the event that uvx The path is incorrect and needs to be replaced with the local uvx Path.
   • Save and restart Claude Desktop.
4. Verify Installation::
   • After rebooting, go to Claude Desktop and try to enter a command such as "Find the Composer strategies with the highest alpha".
   • If the configuration is successful, Claude returns the list of policies in the Composer database.

The log file can be used for debugging with the path:

• Windows. %APPDATA%\Claude\logs\mcp-server-composer.log
• macOS. ~/Library/Logs/Claude/mcp-server-composer.log

Main Functions

1. Creating trading strategies

Users can interact with Claude through natural language to quickly generate trading strategies. Example:

• Enter: "Build me a crypto strategy with a maximum drawdown of 30% or less."
• Claude will filter policies from the Composer database or generate new policies as required.
• Users can specify technical indicators (e.g. RSI, MA, EMA) or asset types (e.g. stocks, cryptocurrencies).
• The generated strategy displays parameters such as asset weights, trading conditions and risk controls.

2. Backtesting strategy

Backtesting is a core feature of Composer Trade MCP that helps users verify the historical performance of their strategies:

• Enter the instruction: "Compare the strategy's performance against the S&P 500. Plot the results."
• The system extracts historical data through the backtesting API, generating charts of strategy performance and comparing it to benchmarks such as the S&P 500.
• Users can view key metrics such as annualized returns, maximum retracements and Sharpe ratios.
• The backtesting feature can be used without an account and is suitable for beginners to test their strategies.

3. Execution of automated transactions

• Users are required to subscribe to Composer (which offers a 14-day free trial) and connect a brokerage account (e.g. Alpaca).
• Enter instructions such as "Invest in symphony ID 123 for account XYZ."
• The system will automatically execute trades and dynamically adjust the portfolio in response to market changes.
• Note: Operations involving funds (such as invest_in_symphony,withdraw_from_symphony) Be cautious and allow only a single authorization to avoid accidental operation.

4. Monitoring and management

• Enter: "Show my portfolio daily performance."
• The system returns real-time performance data for accounts and individual strategies, including returns, positions and cash balances.
• Users can adjust the policy with commands such as "Rebalance symphony now" or "Liquidate symphony ID 123".

Featured Function Operation

1. Use of off-the-shelf strategies

Composer offers more than 1,000 ready-to-use strategies covering categories such as long-term investing, technology stocks, diversification, and more:

• Input: "Find the Composer strategies with the highest alpha."
• The system lists high alpha strategies and the user can view details (e.g. historical returns, risk indicators).
• Invest directly in off-the-shelf strategies or tweak parameters with a code-free editor.

2. Community sharing

• Users can share self-built strategies with the Composer community for others to test or invest in.
• Exchange strategy inspiration with other users via the Composer website or the Slack community.

3. Dynamic adjustments

• "Symphonies" continuously monitors the market and automatically rebalances it according to predefined logic.
• For example, enter, "Analyze my symphonies and determine whether I should increase/decrease my investments."
• Claude will provide advice in conjunction with the latest market trends and strategy performance.

caveat

• Recommended Claude Opus 4, superior to Sonnet, good with tools.
• Enable Claude's Research mode for the latest financial data.
• Trade execution needs to be done carefully to avoid frequent adjustments resulting in additional costs.
• Backtest results are based on historical data and are not a guarantee of future performance.

application scenario

1. Retail Investors Try Quantitative Trading
   The Composer Trade MCP allows the average investor to quickly build and test trading strategies using natural language with no programming skills required, making it suitable for beginners looking to get into quantitative trading.
2. Optimization Strategies for Professional Traders
   Experienced traders can utilize backtesting APIs and technical indicators to quickly validate complex strategies and save time on manual analysis.
3. Cryptocurrency Investments
   Users can create cryptocurrency-focused strategies that incorporate indicators such as RSI and EMA to dynamically adjust their portfolios in response to market volatility.
4. Community Strategy Sharing
   Investors can share self-built strategies to the Composer community to attract other users to test or invest, for those keen on social investing.

QA

1. Do I need programming skills for Composer Trade MCP?
   Not required. The platform allows users to create and execute policies without programming through natural language interaction and a code-free editor.
2. Is the backtesting feature free?
   Yes, backtesting functionality can be used without an account, but advanced features such as trade execution require a subscription and an API key.
3. What asset types are supported?
   Supports stocks, ETFs and cryptocurrencies, covering a wide range of asset classes.
4. How do I get an API key?
   Create an account at https://www.composer.trade and log in to generate an API key.
5. Are there any additional costs associated with the transaction?
   Composer offers zero-commission transactions, but other fees may be involved, as detailed in the fee description at https://www.composer.trade.