How can I automate a trading system?

Discussion in 'Automated Trading' started by Trader_Herry, Sep 25, 2006.

  1. I'm not a good programmer.
    Currently I'm trading via Interactive Brokers.
    I'm willing to switch brokers if I need to.

    Questions:
    1) What tools or things do I need to automate one's system?

    2) Does it matter what analysis software I use? Will the automation process differ when automating different trading systems (coded in different analysis software). For example, if I have a trading system for Metastock, Tradestation, Amibroker, Wealth-Lab; what do I need to do to automate my system?

    3) Let's say I would like to run the trading system in many markets (so I can spot more trading opportunities). When an opportunity occurs in any of the monitored market, it will place an order. What do I need to setup my computer to do that?

    4) What could I do to prevent bugs occurred during automated trading? Like when the system goes wrong and keep placing orders

    5) Are there any websites or resources which teach people how to automate one's system step-by-step, or discuss anything about automated trading?


    Thanks for your help.
     
  2. There are lots of experienced coders here who also trade, especially using IB's platform. By far the easiest route is just to advertise what you're looking for and pay someone to do it for you.
     
  3. elit

    elit

    I'll try to answer the best I can. Do mind that I'm quite a newbie to automated and trading in general, but I'm learning. The more seasoned traders here could correct me when I'm wrong.

    1. Either program it yourself in any programming language, or hire someone to do it. Or use ready made software, for instance tradebolt. Amibroker can also be used or wealthlab or tradestation.

    2. I guess the automation will differ quite a lot. Not the general main guidelines, but the specifics and details.

    3. You need data for all the markets you want to trade, and have your computer scan through all markets constantly. Then program your computer to execute a trade when the signal occurs. So you need software and a good computer to run it on, and high quality data.

    4. Monitor your system. Make sure your software and hardware is stable. Have your computer and internet connection secured for viruses and hacking, antivirus and firewall should do the trick.

    5. There is quite nice discussions here at elitetrader, read old threads, lots of good informations and links in them. Also strategyrunner.com could be something to check out, a provder of automated systems.
     
  4. If you are scanning several markets and running the data over all of the items in those markets you are going to need something other than the run of the mill computers that you will find in your local computer store.

    Start out by taking a look at http://www.customtradingcomputers.com to find the computer. They are the only source that I have found that directly targets the trading industry.

    The guys there can also point you in the direction of some coders that they recommend at no cost. They will even do that if you don't buy a PC.

    I haven't had the stash yet to make such a move, but will definitely do so as soon as I am able.
     
  5. I'm a bit reluctant to do that since I need to disclose my trading method. How do you ensure your programmer will not steal your trading system?
     
  6. Do you mean I can simply automate my trading system within Amibroker / Wealthlab / Tradestation?

    Do they have tools which help me to automate my system?


    So the application of automation to each analysis software is different.
    What makes software like Tradebolt or Tradebullet possible to manage to do all of them?

    How can I tell the computer to scan through all markets?

    And is it feasible to run my system on others' server?
    It appears some companies offer this service.
    But is it safe to do?


    OK!


    I would take a look at strategyrunner.com
     
  7. I've always signed an NDA with people I've programmed systems for.
     
  8. I've used NDA's, too. However, what about people seeing your idea at the clearing firm level? The person who reviews your position every night, will see if you have a repeatable edge. (I acknowledge sometimes it's hard to replicate the decision making for your investment picks - but sometimes it's not). I found a repeatable edge and the clearing firm (I no longer use), almost started to teach classes in it.

    Don't think your clearing firm would exploit your edge? Nothing in the laws stops them. When you see money lying on the ground do you go over and pick it up? Your repeatable edge ideas are a healthy profit center for clearing firms.

    Ideas on how to control leakage of hard-won methods?
     
  9. FYI from Hank Camp's website (www.programtrading.com)

    1.02 Computers and computer salesmen.
    This section is designed to save you thousands on equipment, hardware, and operating system purchases. The Consumer Reports of the hardware business. Who's good and who's bad. Who's reliable and...it's locked up again.
    • 8.0 GHz Quad dual-core 888 with 10 gig memory running windows 2009
    • Credit card ROM turns DVD's into vinyl LP's
    • The geek of the week.
    • The Internet and kids...watch out for both.
    • The GM mentality....just add more chrome.
    • Reinventing the wheel of diminishing returns.


    LOL above.... but these guys are good.

    http://www.programtrading.com/seminars/fall 2006.htm

    Don
     
  10. How about opening your account in more than 1 firm?
     
    #10     Sep 27, 2006