I've been looking at the prices of some stuff and I think there is money to be made from an inefficiency in the market. Obviously I have to see how quickly this inefficiency becomes efficient. If the big guys whack the price back into place too quickly, than there is no point in me in making a play on this. But assuming I could capitalize on this inefficiency, I was wondering, what do I need to create a 'bot' that can alert me when this inefficiency appears? And perhaps, how do I make a bot that will execute an order for me via my online brokerage account automatically? Can someone give me a primer? I just need a list of what I need to learn. For example, what programming languages, how to get a data feed to your computer, etc... And where do I start. For example, first learn this language, learn how to do so and so in this language, then do this and that... I have no computer science background so please be easy. Thanks! I don't trade for a living so this is more of a hobby. That means I probably won't go to a prop shop and use their technology.
The easiest way would be to sign up for TradeStation. I really like it for backtesting because its one of the faster for minute data and the data is included. However, it has several really basic limitations that hopefully they will resolve in near future. Another option would be try to NinjaTrader which I believe is free. There is, also, another platform in beta I'm closely watching, I believe it is NewPageSoft. You probably don't want to try to build your own platform. There are several good platforms depending on what you want to do. I think TradeStation is easiest to get started. You might try MultiCharts too.
it's really depends on complexity of your "system".tradestation may or many not fit. likely excel +(if it not enough-VBA) should be more than enough for pretty much anything. trade station probably require either account with them or monthly fee. excel-typically part of MS office,can be found for free on most MSFT operated PC's. grab a book or two,join some yahoo groups and learn learn learn. or hire some one. or collaborate-your idea and some one's programming skills. i would say-interactive brokers demo + their excel sample file(see API section). if you can figure out their platform installation process and make the things work together(dde excel file)-then you can move on to the coding of your idea. let us know,if you pass that 1st level
Inefficiency in the markets? Even if they exit, do you think they are waiting for your bot to hit them? What is GS doing? Just watching your bot making money? There no market inefficiencies. There is only a market and its action. What you call an inefficiency its someone else's efficient action. Your statement sounds like "Race car driving is a nice sport with high prizes. I don't know how to drive race cars. How can I become a formula one driver and make a lot of money winning prizes?" I am being sarcastic just to let you understand the level of complexity you have in front of you. That doesn't mean you should not try but you have to be aware of the task difficulty. Note: indicator signals, crossovers, patterns, etc, are not inefficiencies, they are forecasting tools. Inefficiencies have to do with mispricings of financial products in different markets and are extremely rare. GS will not wait for you to get advantage of them. I suspect you just want to develop automated trading systems. That task is much easier but it is too common and carries high risk of ruin.