Looking for an experienced developer to help build a modular trading tool

[spy]

I'm still interested in connecting with any developers who think they have the expertise.

I have news for you... you're already connecting w/ many of these people on this very thread. If you want to hire any of them, PM them an offer and wait for them to counter.

Lacking that you'll just get replies that tell you you're out of your league; probably for good reason.

 

[newwurldmn]

Thanks claude.ai. Big help, bot.

bentleyes don’t arbitrage themselves.

 

[traider]

I'm looking to hire someone to build a robust market-making tool:

I have more granular schematics but as a general overview the tool will have the following capabilities:

-Generate theoretical bid/ask values for 'product A' based on a ratio+offset to 'product b' *Ability to be used for various sets of products simulatenously simply by swapping products and ratios.
-Needs to work for both futures and equity markets
-Once a theoretical value is generated, should have the ability to build modular strategies to send orders- MM (quote, dime, multi-levels) / Market Take
-Needs to generate hedging orders based on 'product b' or using designated hedges
-Needs to be robust... completed tool will have to be able to manage millions in live quotes simultaneously and reliably.

The simplest way I'd describe it is a form of an automated pair trading tool where opportunities are based on theoretical values priced off a per-defined ratio.

I've been using IB for over 10 years, so ideally I would build something that would work there, unless the developer/product manager convinces me there is a better direction.

I'm willing to pay fairly based on developer ability and experience. Thanks.

When you are hit on 1 side and your hedge starts running away from you what do you want the algo to do?
Cross the market aggressively?

Are you using order book signals for your trades?
Do you need machine learning on historical order book data?

 

[alphahunter]

Thanks for the color, so at least you have at least some grip on what you´re getting into.
Nevertheless, as it´s already being said, it´s hard to understand why you would trade via IB which isn´t the same shop as it was when Peterffy was still in charge. It´s a trash shop with trash infrastructure and it´s internal risk engine is an enigma that will margin call you at will...or not.

At least start by looking at a proper clearer that offers proper tech.

If you have prop background, you know how many guys worked in the tech department. One guy for hardware, another one for connectivity and probably a couple of code jockeys to implement the traders ideas.
And that´s how many people you need. A senior who is proficient in critical low latency systems costs north of 200k today and that is just one guy.
You just cannot replicate the economics of scale of a prop shop as a one man show. Many tried and either failed or run a prop shop themselves sooner or later.

The problem is your market. If you said you trade crypto...well 15k worth of Python code on a Jupyter Notebook would do...and probably 1k/m maintainance. You would not even need to go custom for futures. TT or CQG is 2k/m all in
But you want to trade US Equities, one fragmented nightmare of a market that cannot decide weither it´s lit or OTC, where infra is crazy expensive because everyone and their mom is selling their soul to get a piece of that juicy 18 sharpe retail flow... and your software developer needs to understand it. Good luck with that.


Off the shelf or learn to code...or join a prop shop again. Weither you partner up with some coders and share your success or you pay a split for the tech. Paying 100k+ one time fee to replicate your former prop shops tech stack is the road to disaster, believe me

I'm not married to the idea of staying with IB, I just find them useful for the following reasons:

1. I still do quite a lot of manual trading, and this automation would not completely remove that need. Specifically, I find the use of book traders extremely important for my needs (I know TT has something similar for futures, but I need this for stocks as well)

2. I find their accessibility and rates for stock locates to be quite good.

3. I find their portfolio margin to be decent (I often need to hold large offset (delta1) positions overnight) and their leverage on 'offsetting' positions is better than basic RegT brokers. Offsetting margin between Futs and etfs for example.

4. I keep a significant amount of capital in a personal investment account with them (not mark-2-market), so on occasion when things hit the fan, I could quickly and easily transfer over capital/margin (borrow against my long-term equities for collateral) I often need the collateral immediately to take advantage of opportunities.


I'm not naive to the fact the IB is not the best place to use for quoting- but for the combination of the factors #1-3 I would at least need to at least centralize everything with another Prime Broker who would have a in house book-trader style manual trader and an ability to portfolio margin across asset classes, with good leverage.

Do you have a suggestion for a better way to accomplish #1-3? (#4 is what it is...)

Does anyone else have a book trader style tool for equities?

I make hundreds of trades a day this way, so that functionality is more important to keep. When I used to PB with a bulge-bracket they had some tools (x-trader), but are you familiar with other options that would have this same features and integration?

What about options to solve the high leverage needs for cross-asset portfolio margin on delta-1 style positions?

 

[MarkBrown]

To address your needs for manual trading with book trader functionality, stock locates, and high leverage for cross-asset portfolio margin, here are some suggestions:

1. Book Trader Style Tools for Equities:
   
   • ThinkOrSwim (by TD Ameritrade): This platform offers a highly customizable trading interface, including book trader-style tools for equities. It supports active trading with direct market access (DMA), which is crucial for high-frequency manual trading.
   • Sterling Trader Pro: Known for its high-speed, direct market access and robust order routing, Sterling Trader Pro offers advanced book trader features and is popular among professional traders for equities and options.
   • Lightspeed Trading: Offers a suite of trading tools, including a book trader and Level II access, specifically designed for active equity traders. It's known for low-latency execution and good support for high-frequency trading.
2. Cross-Asset Portfolio Margin and Leverage:
   
   • Prime Brokerage Services: Considering your needs for portfolio margin across different asset classes (futures, ETFs, equities), using a prime broker that specializes in this could be beneficial. Firms like Goldman Sachs, Morgan Stanley, or UBS provide comprehensive prime brokerage services, including portfolio margin across asset classes with high leverage options. These services are usually customized to the client's specific needs, which could match your requirements for delta-1 style positions.
   • Interactive Brokers Portfolio Margin Account: IBKR's portfolio margin accounts allow for significant leverage across different asset classes, including equities, options, and futures. It might not offer the same level of cross-margining as a prime broker, but it's more accessible to individual traders.
   • CME Clearing Cross-Margining: If your trading involves a lot of futures, the CME Group offers cross-margining for offsetting positions held at clearing firms that are members of CME, such as futures and options. This could be combined with a prime broker's services for equities and ETFs.
3. Other Platforms and Tools:
   
   • TT Platform (by Trading Technologies): While primarily focused on futures, TT offers powerful trading tools that could be adapted for equities with some customization or through integration with other platforms.
   • Bloomberg Terminal: For high-frequency traders, the Bloomberg Terminal provides sophisticated trading functionalities, including order management, execution tools, and advanced analytics. It may not be as specialized in book trader functionalities, but its comprehensive market coverage and integration capabilities are valuable.

Given your experience and volume of trades, a combination of platforms might be necessary to optimize execution and leverage while maintaining centralized control over your trading operations. Using a prime broker for the portfolio margin aspect while integrating specialized trading platforms for execution might give you the best of both worlds.

 

[alphahunter]

When you are hit on 1 side and your hedge starts running away from you what do you want the algo to do?
Cross the market aggressively?

Are you using order book signals for your trades?
Do you need machine learning on historical order book data?

I wouldn't be using any historical data/historical orderbook/no machine learning, just real-time prices- no need for a database.

I would keep the hedging simple- it would generate a limit order based on the triggered price- if the hedge misses it sits there- unless I cancel it and manage the delta manually (that's what I do now). No, I would NEVER cross the market aggressively.

Obviously I'd like to have order book signal (and other signals at least for 'safety') but I'd keep it very simple to achieve a minimum viable product.

 

[MrMuppet]

I'm not married to the idea of staying with IB, I just find them useful for the following reasons:

1. I still do quite a lot of manual trading, and this automation would not completely remove that need. Specifically, I find the use of book traders extremely important for my needs (I know TT has something similar for futures, but I need this for stocks as well)

2. I find their accessibility and rates for stock locates to be quite good.

3. I find their portfolio margin to be decent (I often need to hold large offset (delta1) positions overnight) and their leverage on 'offsetting' positions is better than basic RegT brokers. Offsetting margin between Futs and etfs for example.

4. I keep a significant amount of capital in a personal investment account with them (not mark-2-market), so on occasion when things hit the fan, I could quickly and easily transfer over capital/margin (borrow against my long-term equities for collateral) I often need the collateral immediately to take advantage of opportunities.


I'm not naive to the fact the IB is not the best place to use for quoting- but for the combination of the factors #1-3 I would at least need to at least centralize everything with another Prime Broker who would have a in house book-trader style manual trader and an ability to portfolio margin across asset classes, with good leverage.

Do you have a suggestion for a better way to accomplish #1-3? (#4 is what it is...)

Does anyone else have a book trader style tool for equities?

I make hundreds of trades a day this way, so that functionality is more important to keep. When I used to PB with a bulge-bracket they had some tools (x-trader), but are you familiar with other options that would have this same features and integration?

What about options to solve the high leverage needs for cross-asset portfolio margin on delta-1 style positions?

I think it will be very difficult to find a broker that will cater to the tech sensitive high volume trader and at the same time offer more or less global market coverage with one fits all margin.

You could try to arrange a custom deal and post US Treasuries as collateral that are locked at your bank or you can go ahead and shop for prime brokerage. You will need a higher account size, probably pay minimum in monthly commissions but you most likely will have it all.

When I traded equities short term I was using Centerpoint but that´s been ten years. Nowadays I use prime brokers/dealers for most of my stuff. The best way to start is to have a look at the respective exchange member lists like here: https://www.nyse.com/markets/nyse/membership#directory

Most likely GS, UBS or Morgan won´t even reply to your request email but there are a couple of clearers who specialize in catering to smaller funds and "pro-tail" aka. ex. HF traders and prop shop warriors who do their own thing. Start having some conversations. I´m sure you will also find a suitable software solution.


When it comes to toolsets, well...the world is yours. It should not be much of a problem to find a price ladder for equities. Sierra Chart might be a good start if you like to suffer

It took me a year to put together my first professional setup including incorporation. I hope you´re faster. Good luck

 

[Drawdown Addict]

How much are you willing to pay per day?

If you are not thinking around 600 euros/day forget about it. Any developer that offers you anything below that will produce garbage.

 

[Peter8519]

There are many commercially available tools e.g. Metastock, Ninja Trader, TradeStation, Wealth-Lab, Neuroshell, TradingView, MultiChart, Amibroker etc.
Here are examples of scripting tips for Stock and Commodities Magazine.
Back Issue Archive (traders.com)
Under each Trader's Tips, it provides various scripts for each trading strategy.

It's not advisable to build your own, design and debugging will take a long time.
I am a Amibroker user and it takes a long time to master it.
https://forum.amibroker.com/

NinjaTrader is free if you don't need live trading.
Futures Trading | NinjaTrader
https://forum.ninjatrader.com/index.php?_gl=1*y72qxw*_gcl_au*MTY0MzYxNzg4Ny4xNzI0OTUzNTgx

All trading packages have their own scripting tool/language. You need to master it in order to exploit its full potential.

 

[bln]

How much are you willing to pay per day?

If you are not thinking around 600 euros/day forget about it. Any developer that offers you anything below that will produce garbage.

Nah.. one can modularize it and hand out smaller pieces to cheap devs in Africa, East Asia, South America, etc.

Then you run tests of the API + latency time and they only get paid if it performs according to spec.