Programer needed for Box

Discussion in 'Automated Trading' started by stocktradewin, Feb 26, 2007.

  1. MGJ

    MGJ

    Perhaps you could specify it so there are a number of user-adjustable parameters or "knobs" that you can manipulate after the final product is delivered. So you can change your mind later, so you can run it on new stocks / futures / forexpairs / options as they pop up from time to time in the future, so you can adapt to changing market conditions. You don't have to tell the programmer what values of parameters (settings of knobs) you intend to use.

    For example, suppose your magic system is the following (long only for brevity):
    1. Filter1 = RSI(14) > 60
    2. Filter2 = Sentiment < 33
    3. If Filter1 AND Filter2 AND (SMA(Close,10) > SMA(Close,50)) then buy to enter long
    4. If (daysintrade > 50) OR (Close < SMA(Close,5)) then sell to exit long
    You could specify the software the programmer must write, to include the "knobs" shown below. Notice that a few of them are dummies, put there to confuse / misdirect someone who might wish to purloin your infinitely valuable intellectual property.
    • Knob1: Use filter1, yes or no?
    • Knob2: Number of days in RSI?
    • Knob3: Greater than, or less than?
    • Knob4: RSI threshold value
    • Knob5: Use filter2, yes or no?
    • Knob6: Greater than, or less than?
    • Knob7: Sentiment threshold value
    • Knob8: Use filter3, yes or no?
    • Knob9: Number of days in ADX?
    • Knob10: Greater than, or less than?
    • Knob11: ADX threshold value
    • Knob12: Number of days in first SMA?
    • Knob13: first SMA of what? Close? ((H+L)/2)? ((O+H+L+C)/4)?
    • Knob 14: Number of days in second SMA?
    • Knob 15: second SMA of what? Close? ((H+L)/2)? ((O+H+L+C)/4)?
    • Knob 16: daysintrade threshold value
    • Knob 17: Exit clauses combined by AND? by OR?
    • Knob 18: Exit MA is Simple? Exponential?
    • Knob 19: Number of days in exit MA?
    • Knob 20: Greater than, or less than?
    You have now made it hard for the programmer to know what your system really is. You have also increased the amount of time it will take to write, debug, test, and certify the program. So the number of man-hours billed to you will increase.
     
    #11     Mar 2, 2007
  2. tommy_b

    tommy_b

    I'm a newbie so just a simple question. With the added cost, time and effort, what are the advantages of going with a custom program instead of just configuring a commercial-off-the-shelf (COTS) program like Trading Blox, TradeStation, WealthLab, etc. to do the same?
    I appreciate that the customized application may perform faster and can be more customized but does that really offset the added effort?
    I wonder what the ratio is out there of customized trading software vs. customized COSTS software among (1) big investment shops (2) medium size shops (3) individual traders.
     
    #12     Mar 2, 2007
  3. rosy2

    rosy2

    i dont think you realize the price you would need to pay for someone. a programmer that is any good at writing trading software already makes a nice income so to get that guy to do a freelance job like this would probably be out of your price range.
     
    #13     Mar 3, 2007
  4. MGJ

    MGJ

    For somebody who is truly frightened (paranoid) about theft, the comparison is between
    1. Becoming a programmer yourself, and trusting no outsiders whatsoever
    2. Paying someone else, an outsider, to do the programming - - - and trusting them
    How much is it worth to you, NOT to have to become a programmer?
     
    #14     Mar 4, 2007
  5. tommy_b

    tommy_b

    To add to what Rosy2 was saying, also consider the quality of the program. First versions of software usually contain bugs. How many and how bad depends on the developer, their development process, and quality control.
     
    #15     Mar 5, 2007