What roles does programming play?

Discussion in 'Automated Trading' started by heyman2, Jan 4, 2009.

  1. heyman2



    I am very new to investing and trading. My family always taught me to stay away from the markets and invest in safe mutual funds. But I am thinking of entering the market with some spare money that I can play with.

    I am a software architect working with .NET and C# working with Fortune 500 companies on some large projects.

    I saw some posts mentioning something about programming and math skills in order to succeed in this business. Which got me intrigued. If there are 100s of automated systems already available out there - then why do you need programming skills? Could someone shed some light on this subject?

  2. You didn't specify whether you want to do discretionary or automated/algorithmic trading.

    I think the answer to your question depends on your goals.

  3. hdawg87


    Programming and math skills are required to do many different things in the 'biz' (trading or other financial modelling). One of the reasons people will use programming is for the development of 'black box' trading and backtesting applications. By programming their own system that interfaces with some brokerage service, the trader ensures that their trading strategy remains relatively private. Additionally, a backtesting application will allow a trader to test and refine multiple complex strategies using their broker's data feed and often will aid in the development of a long-term trading strategy.
  4. I'm going to tell you this very simply. Temper your expectations, and spend some time researching systems. You might find it's much easier to hire the best trader, than to be the best trader. Get Me?

    Always compare results to the S&P500.
  5. I'm going to give you a curt response because I've seen so many people attempt to do this. If I am blunt, sorry but this is just the way it is.

    Being a software architect means NOTHING when it comes to trading. Absolutely NOTHING.

    They are two different worlds. If your desire is to make money trading, then you damn well be a damn good trader and have pre-existing strategies that work manually FIRST.

    If you don't do that, you are just making busy work for yourself trying to force mathematics and science in a world of chaos.

    There are no rigid rules and attempting to get caught in a infinite spiral of finding something that is just not there is a complete waste of time.

    Learn how to trade first, profitably.

    When you can prove that to yourself and believe that whatever you are doing can be automated, then go for it.

  6. Tums


    because there are as many ways to invest/trade as there are to write programs.
  7. heyman2


    thanks for the insight.

    i just wanted to understand what help if any the skill i already own may provide me.

    i have been trying to read up a lot - do some paper trading. ofcourse i am not naive to think that being a programmer will make me rich.
  8. GTG


    The most useful aspect of having programming skills for trading is not so much in writing autonomous automated trading systems. This is a very difficult task, even for an expert engineer and trader. The most important uses for programming skills for a trader are for acquiring data, analyzing data, testing trading ideas, and automating simple chores.