I would like to become an automated trader. How do I start?

Discussion in 'Automated Trading' started by jinxu, Nov 27, 2017.

  1. jinxu


    My system rules are starting to become finalized. With minor tweaks here and there. There is the possibility that part of the system rules can be automated.

    However, I only have a novice level of programming experience. I've put it off over the year because I thought that my system wouldn't work automated. Now I see that it might be possible. I'm considering this now because discretionary trading has it drawbacks.

    Mainly, the first two type of algorithm I want to develop is an alert system so I don't have to monitor the market 24/7 to wait for my signals. And a risk control system because it's my weakness and a bot probably could do it better.

    How would I get started? What language and platform should I use? Are there any library code out there that you can buy or get for free? Thanks.
  2. Lots of things available for this. Metatrader would be my goto if they supported Linux.
  3. just21


    Interactive brokers TWS will send you alerts to email, sms or audibly. You can enter a stop when the order is placed and have this trail the position again in IB TWS.
  4. Simples


    Would you be able to implement something in LibreOffice Calc? You may be able to use that to generate alerts. Formulas are declarative in form, so even though a bit limited in function, they are helpful for simple prototypes. Might provide you new ideas on how to go forward and you can extend formulas with macro-like coding to do anything else you need.

    If on Windows, Ninjatrader might be useful to have something that brings a bit more power for analysis/automation through C#. Though it is a full framework, so might also limit your choices going forward as well. Same goes for any other platform/framework, but they implement much basic functionality, so may serve as a helpful start.

    For more automation than alerts, you need to backtest alot, or risk system breakdown on "dumb scenarios" that discretion tend to filter out, but the computer do not. You'll be surprised in how ways the computer will botch a "perfectly profitable system"! :banghead::p
    piezoe likes this.
  5. MattZ

    MattZ Sponsor

    I think you need to learn what is the strengths and weaknesses of each programmable language and then decide on the language to apply your method with. That is the only way, in my opinion, that you can decide objectively what is most appropriate for you.
    sle likes this.
  6. RedDuke


    Take a look at NinjaTrader. Fantastic platform and all free until you need to trade live (then really cheap as well). Connects to most brokers and fully flexible via coding in c# They also have powerful "drag and drop" way to built strategies, obviously no even close to manually coding, but quite decent.
  7. There are many options available, and many decisions to make. I would say the first decision (and the one that will affect the subsequent ones) is whether you want to start with a platform, or whether you want to start from scratch.

    Given your limited programming experience, I would suggest you start with a platform. They typically come with their own scripting language which can be used to program your trading strategies. The most popular choices include TradeStation, NinjaTrader, MetaTrader, but there are others, as well.
  8. toc


    Get an auto and mate inside it then exchange some currency.............automated trader strikes again !!
  9. DaveV


    Before you start writing and programs, first write down, on paper, the steps that your automated trading will do. Statements such as "risk control system because it's my weakness and a bot probably could do it better" leads me to believe that you have not fully thought out exactly what steps your automation should perform.

    Next split the automation into separate tasks. I would start with automating the alert part of the project, but leave the actual trading to manual steps. Thus if you get false alerts, you can work on the algorithm that generates the alerts without risking accidental trades that you did not intend. Any of the previously mentioned platform should be able to generate your alerts. Once you have ironed out all the bugs from you alert algorithm, work on automating the trades.
    digitalnomad and nooby_mcnoob like this.
  10. Humpy


    If you have a profitable system and are weak at programming then get the help of a programmer. MT4 have a lot to choose from and will code up for 100 - 300 dollars.

    #10     Nov 28, 2017