Is this possible to set up?

Discussion in 'Automated Trading' started by user83248324, Jan 19, 2009.

  1. Hi guys, thanks for taking the time to look at my question...

    So…I am wondering if it would be possible to create an automated trading system based around very short term pair trades. What I would essentially want the automated trading system to do is began looking at two pairs of stocks at a specific time in the day for which I tell it to. I would want it to look at the two stocks as if equal dollar amounts had been invested in them both. I would then want the automated trader to buy into both stocks if say there was a $100 decrease in the spread, put a automatic limit order in at $100 profit and then always have an automatic stop loss of say 200 dollars? Would something like this be possible? If so what software would I have to use to achieve this and how complicated would it get for a complete newb. (note: I currently use TOS for trading and I would like to keep it that way but I understand that it is not great for doing automated trading). Thanksa ton for any help you can provide. Also, please note that I do not want to discuss the strategy of the trade I have brought up, that was just a random trade made up to just give an idea of what I am trying to achieve. Thanks again. If anything in the above text is confusing, please tell me and I will try to clarify more.
  2. rosy2


    as long as your broker provides an API then you can program this yourself. As far as a COTS solution I dont know.

    For a newb with no programming experience I would bet that you never get this going. :(
  3. I don't know much about TOS, I checked their website and I couldn't find any information about an api... except in their institutional product and then it was FIX-only and "coming soon". They're calling this 'thinkfix'.

    So seems as if it may be tough to use TOS at this time.

    Here's a pairs trading example of pretty close what you're trying to do :

    TradeLink works with IB, Assent and Sterling companies presently. It's free and open-source so it's good for paranoid people who don't want to share their ideas but still have a totally transparent platform for trading.