I'm starting working my own algo trader. Meet, the not existing yet, Trader Jo. I'll be using IB + Java + Windows. I will be doing that for fun, I'm not going to be a hardcore trader, and I know what professional traders would say about me A little about me. I graduated from NTUU KPI; live in Seattle, WA; have 13 years of experience in software development. Have 0 experience in trading, I have read a couple of books on trading and investments. English is my second language, so expect missing articles and weird combinations of random words. I lost $28K in February, that was a good lesson. Almost all my shorts cost me money, so I won't be using them in the Trader Jo. Trader Jo will be trading stocks with high volume assuming a bear trend (yeah, I know what you think about it and I know that eventually that will cost me). I'll post trade and change logs in this thread. I'll use github or some other public git repo as a code repository. Any good advice on the existing implementation of simple indicators? Like all kind of single/exponential/triangular moving averages, vwap, etc. Wish me good luck.
Man o man... So what a heck will you program, which ideas,.....???? I do not believe in capabilities of any method or trader that does not short.... Again developed ideas, test them, then program And never, never program anything for trading while you yourself believe that you have zero experience in trading , wait when you feel that you at least 1.
Ideas? First I'll try to use wavy and random nature of the price. I'll see how it works with different stocks. > I do not believe in capabilities of any method or trader that does not short.... You are right I don't believe in my capabilities to short, that is why it won't short at the beginning. In the long run half of price movement is short and half is long. So, I lose at least half of the chances to make some small money, but not all. Eventually, the Trader Jo will start shorting. I'll start with something simple. > And never, never program anything for trading while you yourself believe > that you have zero experience in trading , wait when you feel that you at least 1. Testing is a key for the stable results. Unit/integ/regression/back testing that what I'm going to have.
Your system is an expert in chart reading ? The manipulators can make the charts look good. Your system use some random distribution to predict a chaotic price of the market and expecting it to give a accurate price prediction ? Just may be, that someone out there has already using a powerful AI system to predict the market besides all the physics model. I am not trying to discourage you but just be careful of trying to squeeze the market into a box.
I do wish you much luck, cause buddy, you are going to need much more than luck though. You are going to need to spend 1-2 years at very minimum reading and testing since you come here asking about indicators. Granted, this is a forum about trading, but the forum sees so many guys like you and too often you will end up getting misinformation and your lack of respect you this craft of asking for help when after you lost large sum of money is really the beginning of loss, and it won't be money the next time as I am sure you lost part of who you are within you. "In the long run half of price movement is short and half is long." You are already wrong with this statement, you check many of the companies since 2009 on long term basis, would you say overall the market is half wise going down? And no markets are not in long run of price movements and half long, price movement based on time is very different than you suspect cause you being a software guy think in terms of on/off, black/white and not in terms of variances and speed of price, but you wouldn't know this from books but great deal of testing but at very least know about charting till your subconscious has memorized the basic components of price movement. I know way way too many people who went bankrupt cause they kept buying when they didn't have a clue of chart reading, you friend is on this path. http://thepatternsite.com/ This is an excellent site to start your chart reading ability, cause if you can't chart like breathing, you never become the trader you want to be. Others will say all you need is TA, and TA is fine as I use it myself, but TA is often used wrong because people are unaware of relationship between price and what the TA should be doing to follow in some way 99% of the time. And when you unaware of the that "1%", the 28k loss will seem small next time. "History", if you don't know history of a stock, history of the overall markets, history of thyself, and know that History will repeat, you traveling in an area where your journey will be emotionally tormenting. Chart reading is not only what is happening now but what happened when this same chart pattern have similar or exact features fifteen years ago? Almost all stocks have personalities and often unique to themselves. Chart reading edges are often in the past and where you have to learn, there are basically two ways to enter, breakout or waiting for price to get to a certain area. Breakouts are easy on your "soul" as price is within your mind going in the direction you want it to go, but what new traders don't know, many "algo's" might be pushing price to trigger orders then stock "retail" are caught wrong and have small knowledge is risk management. The only thing you can generally control is risk and yet it very seldom learned about first by most traders, it is only when you have lost almost your "mind" and at another stage far down the road after you might be showing a profit you find studying risk management IS the step to the nest level. And most books you won't find this strongly written cause very few book writers have this knowledge. But traders want signals for entry, but lack how to define trend. When to know when trend is/has changed, you have trend wrong, is when you must quickly change your opinion or action. Many times the market gives you this time to change without loss, but you need the skills to identify change to flat instead of reversing cause price needs time. Often thought of chop but it is change to draw in the inexperienced to think it is congestion when it is really setting them for more losses going other way. I only wrote there is a second way of entry, having the patience to wait for price to come to an area, think in terms of risk management, breakouts generally require greatest risk. There ia a great more opportunities to wait for price to come to an area both for longs and shorts then breakouts but where do new traders go towards? Breakouts cause they feel good for one's brain. Where is smallest risk, waiting as if price does not hold at an area, risk is tight. I do wish you luck, but posting at this time, you should spend more time studying and less time trading, but it is "IMHO" in my humble opinion. And your English is fine, I was born here and find it is difficult language to learn.
Each stock trend has its own personalities. It took me quite awhile to understand it. The only reason that I can think of is that each stock attracts different crowd, speculators and manipulators. The overall effect makes up its personalities.
Today's sales: Code: Time Symbol Action Qty Price Exch Fee P&L 12:59:50 TQQQ SLD 50 175.88 ISLAND 1.21 13.79 12:43:45 TQQQ BOT 50 175.56 ISLAND 1 12:04:25 TQQQ SLD 50 175.18 ISLAND 1.21 13.79 11:45:24 TQQQ BOT 50 174.86 ISLAND 1 11:37:51 TQQQ SLD 50 175.27 ISLAND 1.21 15.29 11:26:23 TQQQ BOT 50 174.92 DARK 1 11:00:05 TQQQ SLD 50 174.56 ISLAND 1.21 11.54 10:52:49 TQQQ SLD 50 174.25 ISLAND 1.21 -3.96 10:52:24 TQQQ BOT 50 174.13 ISLAND 1 10:31:25 TQQQ BOT 50 174.44 ISLAND 1 10:28:36 TQQQ SLD 50 174.51 ISLAND 1.21 3.79 10:26:34 TQQQ BOT 50 174.39 ISLAND 1 10:26:15 TQQQ SLD 50 174.52 ISLAND 1.21 3.79 10:07:16 TQQQ BOT 50 174.40 ISLAND 1 10:01:31 TQQQ SLD 50 174.42 ISLAND 1.21 3.79 10:01:11 TQQQ BOT 50 174.30 ISLAND 1 10:00:15 TQQQ SLD 50 174.47 ISLAND 1.21 3.79 9:59:17 TQQQ BOT 50 174.35 ISLAND 1 9:58:32 TQQQ SLD 50 174.43 ISLAND 1.21 3.79 9:58:05 TQQQ BOT 50 174.31 ISLAND 1 9:57:55 TQQQ SLD 50 174.42 ISLAND 1.21 3.79 9:57:38 TQQQ BOT 50 174.30 ISLAND 1 9:41:54 TQQQ SLD 50 173.63 ISLAND 1.21 3.79 9:41:42 TQQQ BOT 50 173.51 ISLAND 1 9:38:50 TQQQ SLD 50 173.89 ISLAND 1.21 3.79 9:34:56 TQQQ BOT 50 173.77 DARK 1 Total Realized $80.80 Commit id: 5253da9 Time in PDT timezone.