Where to start?

Discussion in 'Automated Trading' started by tortoise, Dec 23, 2007.

  1. Ok, I know next-to-nothing about automated trading. Just last night, I figured out how to code a strategy in EasyLanguage with a fixed target and fixed stop loss. Like I said, I know next-to-nothing.

    Now, I've also invested, by my best guess, approximately 9000 hours in market study and observation, which includes real-time monitoring of most every tick of the ES during RTH for the past two and a half years. Yet it was only this past Thursday, a few minutes after the open that I realized I had finally learned how to trade. Or perhaps I should say, I realized that I had learned how to learn, whilst making a buck along the way.

    In any event, I write this so we can get past "first find your edge, then learn about mechanical systems." I believe I've found my edge. But note the verb, "believe." I'd like to bring a bit more quantitative rigor to my beliefs than I have been able to so far with a handwritten trading journal.

    So, again, where to start if one wishes to learn the "how" and "what" (and, I suppose, "whether") of automated trading? I'm an intermediate EL coder, self-taught, with no computer science training. I do have a math/economics background (The University of Chicago), but that was a while ago. In any event, I am willing (and eager) to do the hard work of building a foundation: Obviously, I don't want to waste time and effort on that which is less-than-necessary, but I'm not expecting shortcuts, either.

    Thanks, in advance, for anyone's illumination
     
  2. lrm

    lrm

    tortoise,

    Go read Van Tharp's "Trade Your Way to Financial Freedom"... the title is hokey, but the book discusses system development in detail. I found it very informative, especially in highlighting what aspects of a system are most important.

    Take care,

    Louis
     
  3. John Joseph is an amazing systems developer and educator, and I would highly recommend his recent free webinars. There is one today (http://www.mirusfutures.com/futures_webinar_nextd_position_sizing.htm) but they are also recorded, so you can watch them on your own time. He does live seminars too but the free webinars are a good place to start. The Truth about Drawdowns is important for ALL traders to watch. This is a guy who has many years of experience, and has audited (positive) results to back up his credibility.
     
  4. lrm

    lrm

    Interesting synopsis on that link about John's talk. Position sizing is one of the heavily emphasized topics in Van Tharps book.

    Thanks for the link!

    Louis