Need Help Setting Up Automated Trading Idea

R

Rex32

Hey Guys,
I'm looking to setup some sort of automated trading algorythm that is based upon earnings and momentum, problem is I don't know where to start. I'm pretty good with computers but all the software I've looked at this far just confuses me. I have access to TradeStation here at school if that is of any use and I also tried WealthLab. Would anyone be able to help me out in getting it started?

Thanks a lot for any input,
Mike
 
I ask my broker to give me their automated trading systems and software that they use and they didn't even reply. I even offer to pay them money for it....

you see you broker is NOT your friend.


Quote from Rex32:

Hey Guys,
I'm looking to setup some sort of automated trading algorythm that is based upon earnings and momentum, problem is I don't know where to start. I'm pretty good with computers but all the software I've looked at this far just confuses me. I have access to TradeStation here at school if that is of any use and I also tried WealthLab. Would anyone be able to help me out in getting it started?

Thanks a lot for any input,
Mike
More...
 
Quote from Rex32:

. . . set up some sort of automated trading algorithm based upon earnings and momentum. . .
More...
There are a couple issues here. In my opinion, an automated trading system (ATS) doesn't make a lot of sense unless you test everything first. That's what I try to do.

By momentum I presume you mean momentum of price change. Price history is not too hard to get until you get down to sub-minute time frame. But getting good earnings data (or any other fundamental data for that matter) as it existed is a lot harder. Unless you have the data as it appeared at the time, you introduce survivorship bias which can invalidate your testing.

Your objective in using automation is another issue. I use an ATS because I am not a very good trader, and because I don't want to waste my life sitting in front of a computer (I'm over 60 now). But my systems are not design to be run unattended. Unattended trading poses issues that greatly (and for most of us, unnecessarily) complicate matters.

Finally, I recommend doing your own programming, if you can, for two main reasons. Using a tool like Tradestation tends to mold you into doing what the tool does best rather than what YOU want to do. And the experience of "getting your hands dirty" with the data, and the analysis of it, give you insights you are not likely to get any other way. I think it's a bit like drawing charts by hand.

Good luck and happy trading!

[rwk]
 
I'm open to doing it myself, I'm pretty savvy with computer stuff but I don't know too much about programming.
I think I'm going to export a list of stocks that released earnings before market opening and then see how their momentum and such work.
If someone wants to chat on AIM about it feel free to IM me. I just need to help in how to set it up, I already have the framework worked out in my head.
Also I'm not going to use a full automated trading system now, want to backtest it and then try it while i sit at the computer and watch.

Thanks,
Mike
 
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