Automating RSI tradng

Discussion in 'Automated Trading' started by ozzie_bozo, Oct 31, 2005.

  1. I trade QQQQ options using the RSI (Relative Strength Indicator) signal, along with a couple of other "ingredients."

    I've been consistently in the green with my system for two years, but at the expense of always having to be in the general vicinity of an online computer.

    Therefore, I want to take the next step and find a way to automate my trades using the RSI.

    I know very little about computer programming. What I want is a simple, cheap, pretty much "no-brain" solution for using the RSI indicator to autotrade with the IB Traders Workstation.

    All I care about is the RSI triggering trades in the IB TWS. Nothing more.

    I trade with a small account, so I can't afford the overhead of a pricey solution (though I would be be willing to pay a good price on a ONE-TIME only basis, as opposed to an ongoing fee, which would eat too much into my "vigorish.").

    I use a 5-day period for the RSI. I've been getting my RSI info free from StockCharts.com. Somehow, I blundered into finding a link to real-time QQQQ RSI-5 info, though I'm not sure that's what Stockcharts.com intended me to have...? Regardless, I use that link daily (when the markets are open).

    Is there some way I can use that Stockcharts.com info to trigger orders in the IB TWS? (I would have to have some way to frequently and automatically refresh the screen from Stockcharts.com.)

    Also, I have access to Prophet Charts RSI-5 real-time info, through an OptionsExpress account that I have. (I don't trade in the OX account; I opened it, but have never used it.) Is there perhaps some way I can use the Prophet chart info to trigger trades in the IB TWS?

    All advice gratefully accepted. Thanks in advance.
     
  2. Choad

    Choad

    This would be easy enough to do if you were a programmer, but I don't know of a cheap or free service that would do it for you and send the trades to IB.

    I take it you are monitoring signals and you would enter the trade based on an intraday calc of RSI, and other signals?

    If you didn't need intraday RSI calcs, you could just input the data to Excel before the open and calculate a limit order entry point.

    You could also get Excel to trade for you realtime, but you would have to learn enough about programming to get it done.

    Another problem is trading options automatically. For some reason, the exchange does not allow this. TWS will pop up a window that you have to close. You can do it automatically, but it takes a little extra software work.

    C
     
  3. Thanks for your reply.

    I have edited my post a few times. Possibly there is some new info in there that would alter your reply, but I am guessing not.

    It sounds like perhaps there's not a cheap non-recurring-cost way to get the RSI signal to trigger trades in IB TWS without being a programmer. Perhaps someone else might have something up their sleeve.
     
  4. Choad

    Choad

    I suspect you may be over-complicating things, on what can be a simple trade entry.

    In my experience there is nothing magical about RSI. It does get decent entry points at times, but then so does just buying at a certain limit after a few down days. IOW I seriously doubt there is a certain buy point where it would ONLY be profitable based on RSI. So if this theory is true, then there are some different things you can do.

    There are a couple ways you can go, but they both involve calculating your own RSI #s.

    1.) Go to: http://www.wealth-lab.com/cgi-bin/WealthLab.DLL/categories

    You could put together a quicky script that calcs RSI for you. It's not really that hard and there are plenty of RSI examples and people to help. You could run the script before the open. The web-based WL is free.

    2.) Input the RSI formula into Excel and calc your own values. Again, not that hard and there is plenty of help available.

    After you get your RSI, use a conditional option order in TWS. Find the point where QQQQ would hit your RSI buy point and simply input it into TWS. QQQQ has enough liquidity to get your order done without you having to watch it. The idea here is to anticipate when QQQ would drop enough to hit your trigger so you don't have to watch during the day. Becareful if you need to cancel lots of option orders. IB charges for this, but you get it back if you trade enough.

    Just a couple suggestions to try.

    Good luck.

    C
     
  5. Sounds easy to me. I'd do it in Excel with IB and the spreadsheet they give with conditional orders. You would need to write some VB scripts (or have somebody write them) to record the bars and you'd need to have Excel and the TWS open and connected to the Internet all day.
     
  6. Appreciate the feedback.

    Wealth-Lab is a whole "universe." Looking forward to delving into it.

    I have an OK command of Excel for things like my household budget and so forth, though nothing advanced. It may be time to go a little deeper.

    I live near a large university. Maybe I should hook up with some computing major who could can help me learn on the cheap.

    Re: anticipating where QQQQ would be at a certain RSI point: thanks for the nudge. I have gone so far as to set IB's audio alarm to alert me when QQQQ would be when I GUESSTIMATED the RSI would getting to a critical point in my system. I then "get in the saddle" and direclty monitor the situation.

    It may well be time follow your suggestion and explore further anticipating "when QQQ would drop enough to hit your trigger so you don't have to watch during the day" (cut-and-pasting your words)
     
  7. You can take a look at QuantDeveloper, www.smartquant.com/quantdeveloper.php . It indeed requires some programming in general but we offer custom strategy programming services to our customers. It should not take much time to setup RSI ATS in QD for you.

    Regards,
    Anton

    www.smartquant.com
     
  8. LeroyB3

    LeroyB3

    You should look into Amibroker. It is a cheap End of Day system that can be hooked up to IB. You will need to know a little coding, but there is a very helpful support community.

    www.amibroker.com

    P.S. I have no affiliation with them.

    Best,

    LB
     
  9. requote:
    I've been consistently out of the blue with my system for
    two years, and I trade with a small account, because i'm
    good for a laugh.