How can I automate a trading system?

[elit]

Quote from Trader_Herry:

Do you mean I can simply automate my trading system within Amibroker / Wealthlab / Tradestation?

Do they have tools which help me to automate my system?




So the application of automation to each analysis software is different.
What makes software like Tradebolt or Tradebullet possible to manage to do all of them?


How can I tell the computer to scan through all markets?

And is it feasible to run my system on others' server?
It appears some companies offer this service.
But is it safe to do?



OK!




I would take a look at strategyrunner.com

As far as I've understood you can automate systems with these software.



Sorry, didn't understand your question regarding tradebolt completely...
But the charting software (wealthlab, tradestation...) sends signals automatically to tradebolt, and tradebolt sends these automatically to your broker.
The charting software have different "programming languages" so it wil be different in how you write your system. Of course the basics - "buy stock XXX at marketprice if indicator X crosses indicator Y" or whatever criteria your system is based on will obviously be the same, only the code how to implement it will differ...


You program your computer to scan the markets, it can be done with the software mentioned (wealthlab etc.) Or with software you write yourself/hire someone to write. If your going to scan the markets in realtime - for daytrading, you probably need powerful scanning capabilities and powerful computers, since you want to scan many markets. Any lags will cost you. If you do end of day (EOD) trading it is not that critical, as long as your scans and calculations are ready before markets open again.



I don't know wheter it's feasible, or anything about hosting your system.. I guess it has its pros and cons.





Hope I'm able to help. Do mind that I'm a newbie, but I'm also interested in this stuff. I'm trying to develop my system in Amibroker. But I have so little sparetime, so it is taking forever...

Out of curiosity, do you have a profitable strategy already?

 

[Pro_Trader720]

Quote from wilburbear:

I've used NDA's, too. However, what about people seeing your idea at the clearing firm level? The person who reviews your position every night, will see if you have a repeatable edge. (I acknowledge sometimes it's hard to replicate the decision making for your investment picks - but sometimes it's not). I found a repeatable edge and the clearing firm (I no longer use), almost started to teach classes in it.

Don't think your clearing firm would exploit your edge? Nothing in the laws stops them. When you see money lying on the ground do you go over and pick it up? Your repeatable edge ideas are a healthy profit center for clearing firms.

Ideas on how to control leakage of hard-won methods?

That is a whole other issue. I was responding to how he can protect himself from a programmer.

You NEED a clearing firm, therefore you are always at risk of them exploiting your edge. I have a proprietary method I use to "confuse" my clearing firm. However, it is usually very difficult for someone to figure out a strategy based strictly on the trades you place..... unless your method is SUPER simple.

 

[ImamicPH]

Quote from Pro_Trader720:

However, it is usually very difficult for someone to figure out a strategy based strictly on the trades you place..... unless your method is SUPER simple.

That's what I was going to say!

I used to work for a clearing firm.

I spent all day going over accounts.

A lot impedes deciphering strats just from trades.

First most of the accounts are discretionary trades.

Second the trades don't have timestamps. You know it just says total number bought/sold for the whole day.

 

[Trader_Herry]

Quote from Pro_Trader720:

That is a whole other issue. I was responding to how he can protect himself from a programmer.

You NEED a clearing firm, therefore you are always at risk of them exploiting your edge. I have a proprietary method I use to "confuse" my clearing firm. However, it is usually very difficult for someone to figure out a strategy based strictly on the trades you place..... unless your method is SUPER simple.

Just use more than 1.

Unless both clearing firms can somehow co-operate together, they cannot exploit your edge.

 

[Don Bright]

I honestly think that the last thing you have to worry about is your Clearing Firm. Just at Bright we generate hundreds of thousands of line items every day....I think Goldman is more likely to have their people make sure they don't screw something up than try to analyze how someone makes money.

Don

 

[Trader_Herry]

Could the automation simply be done within charting software like Metastock, Tradestation, Amibroker, WealthLab once I have coded my trading system?

Let's say I have a trading system already. The only thing I need to do is to automate it. Do I need to do something more, like write another set of codes just to automate it?
If so, is there any tool available in Metastock, Tradestation, Amibroker, WealthLab?

I don't really know how to program by pure programming language, so program by myself is not a viable option.

 

[Pro_Trader720]

Quote from Trader_Herry:

Just use more than 1.

Unless both clearing firms can somehow co-operate together, they cannot exploit your edge.

Easier said than done when using an automated system. I am not aware of any software that will automatically execute orders, and give you the option of which clearing firm to execute the orders through. Even if the software was available, you run into the problem of which orders you are going to have sent where. It's not as easy as it sounds, but would be possible if the software is available!

 

[Pro_Trader720]

Quote from Trader_Herry:

Could the automation simply be done within charting software like Metastock, Tradestation, Amibroker, WealthLab once I have coded my trading system?

Let's say I have a trading system already. The only thing I need to do is to automate it. Do I need to do something more, like write another set of codes just to automate it?
If so, is there any tool available in Metastock, Tradestation, Amibroker, WealthLab?

I don't really know how to program by pure programming language, so program by myself is not a viable option.

Depends on the software you are using to execute. I would say it will most likely require extra code to automate it properly.

 

[Trader_Herry]

Quote from Pro_Trader720:

Easier said than done when using an automated system. I am not aware of any software that will automatically execute orders, and give you the option of which clearing firm to execute the orders through. Even if the software was available, you run into the problem of which orders you are going to have sent where. It's not as easy as it sounds, but would be possible if the software is available!

Oh sorry!

I thought it is feasible because my mind is stuck with discretionary trading when I answered the question, like you may simply buy in one clearing firm, and sell in another.

Maybe you need to run the same trading system in two computers. You also need to tweak your trading system to work with your ordering requirement (eg add filters/rules).

That's the idea. I'm not sure how hard it is to achieve it.

 

[Trader_Herry]

Quote from Pro_Trader720:

Depends on the software you are using to execute. I would say it will most likely require extra code to automate it properly.

Extra codes... Do I need to write a small program just to automate, or simply attach automation codes to trading system?

Can I write the automation codes within the chartng software? And what chartng software can do so (ie have in-built auotmation functions)?

Thanks.