Where to begin?

blackriver

blackriver

I have some programming background, and I'd like to try writing a program or algorithm to automatically trade stocks. I need to learn the mechanics of how this can be done. I need access to stock market data, and learn how people connect to the market to do the trading. Hopefully there are approaches that don't require a big investment to start experimenting.

Is there a book, website, or other source you would refer me to to start learing? I see several books on Amazon but it would be good if one of them has a good reputation or is a favorite among experienced people here.

Thanks much,
Jim
 
blackriver said:
I have some programming background, and I'd like to try writing a program or algorithm to automatically trade stocks. I need to learn the mechanics of how this can be done. I need access to stock market data, and learn how people connect to the market to do the trading. Hopefully there are approaches that don't require a big investment to start experimenting.

Is there a book, website, or other source you would refer me to to start learing? I see several books on Amazon but it would be good if one of them has a good reputation or is a favorite among experienced people here.

Thanks much,
Jim
More...
My 2c.
The fact you know programming but don't understand trading is OK, I don't see a problem so long as you take a right approach from here on, or should I better say, don't take the wrong approach.

Firstly, imo, 99.9% of new and growing traders attempt to emulate others.

My suggestion, don't go down this dead end route of copy catting substandard or the losers methods.

Second, don't attempt to code how to make money, begin to code how to prevent losses.

Third, don't attempt to code an auto system (yet).

Code so you get signals which can be discretioanally traded on positions which show the best chance of not catching you out and taking away your money.

If you can do that, you are already way ahead of the game.
 
Knowing how to develop applications gets you an advantage until you reach a point where you need an edge.
Once you are comfortable with an API and have your applications set up you will need to trade discretionary for a while, in order to understand how a trader would think. Specially to understand the way discretionary traders would lose money.
If you manage to find an edge you will be in a position to automate it, until then whatever automation that you are able to achieve is useless.

Regarding books and manuals, authors that published books for automated trading made programming manuals oriented to a specific API, something that we know already. So you would prefer to read about discretionary traders and their craft.
 
All major brokers offer an API for automating the trading. The API covers account data & operations, market data & operations, order data & operations , and other things like getting lists etc.

Nowadays the JSON data format is often used in such APIs for the data delivery. Ie. you need a JSON-reader-library, or roll your own as it's not that much complicated.

Here for example is the API of YahooFinance (mainly for market data only): https://financeapi.net/
And here the API of TD Ameritrade: https://developer.tdameritrade.com/
And here the APIs of Interactive Brokers: https://www.interactivebrokers.com/en/trading/ib-api.php
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blackriver said:
I have some programming background, and I'd like to try writing a program or algorithm to automatically trade stocks. I need to learn the mechanics of how this can be done. I need access to stock market data, and learn how people connect to the market to do the trading. Hopefully there are approaches that don't require a big investment to start experimenting.

Is there a book, website, or other source you would refer me to to start learing? I see several books on Amazon but it would be good if one of them has a good reputation or is a favorite among experienced people here.

Thanks much,
Jim
More...

Read the books by Robert Carver.
He also has the most intelligent and intellectually honest thread on here.
His nick is GlobalArbTrader
 
newwurldmn said:
Read the books by Robert Carver.
He also has the most intelligent and intellectually honest thread on here.
His nick is GlobalArbTrader
More...
I don't know Robert personally but I have read his first 2 books, his 3rd is WIP and I agree. His blog is also a useful source of info.
 
blackriver said:
I have some programming background, and I'd like to try writing a program or algorithm to automatically trade stocks. I need to learn the mechanics of how this can be done. I need access to stock market data, and learn how people connect to the market to do the trading. Hopefully there are approaches that don't require a big investment to start experimenting.

Is there a book, website, or other source you would refer me to to start learing? I see several books on Amazon but it would be good if one of them has a good reputation or is a favorite among experienced people here.

Thanks much,
Jim
More...



I hate to tell you this, but if you are unable to figure
out how to choose a book on Amazon, then all of this
programming algorithms and trading automatically
business is NOT for you.

Most serious traders do not have ONE (1) book on
trading, but a shelf full PLUS several ebooks on their
computers, and they read and learn all the time.

There isn't some magic book that tells you all there
is to know about trading, since there are numerous
markets (day trades, options, forex, futures),
systems, methods, etc. and it takes years to learn
about trading.

You need to be a strong decision maker in order to
be successful at trading. Nobody is going to hold
your hand while you choose stocks to invest your
money in.

Trading does not require a big investment, but if
you do not have money that you cannot afford to
lose, again, this is NOT for you.

You are overcomplicating something that you do
not seem to understand.

Start at the beginning, like everybody else.
 
Thank you all very much. I didn’t realize there were responses. I need to see why I’m not getting email notices.

I have a degree in computer science. One of my graduate students used my simple idea in a class where all of the students competed on an auto trading program assignment. It won the competition by a large margin. So I would like to try it in the stock market and have a small amount of money to use for this experiment. It Is based on the simplest little mathematics axiom.

I will retire soon and this would be a fun hobby. I will acquire a bookshelf of books I expect, but first I just want to learn the mechanics so I can set this idea in motion to see if it works in real life. I’d like to use play money first.

So thank you for the pointers, now I have some avenues to pursue in this project. I Will check in here as I play with this, it seems like a pretty amazing place for talking to smart and informed people.

Thanks,
Jim
 
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