Automation

[N Rothschild]

Can your trading style/system be automated?

 

[oildaytrader]

Can your trading style/system be automated?

Trading styles using fundamental anylysis and forward thinking discretionary trading can not be automated.Trading systems using fixed stops,tsl,b/e, and entries based on price ,volatility breakouts,moving averages and indicators like cci,wpr and stochastics can be automated.

 

[N Rothschild]

wow really? didnt know that

 

[Waterfield]

Surely fundamental analysis can be automated. In the case of expected numbers vs actual numbers in news reports...

 

[oildaytrader]

Surely fundamental analysis can be automated. In the case of expected numbers vs actual numbers in news reports...

How can program automatically gather the information , process it and execute orders?A highly complex job .

 

[oildaytrader]

wow really? didnt know that

My pleasure .Always glad to be a mentor.

 

[Waterfield]

How can a human process the news related information in a fraction of a millisecond? A highly reaction based job.

 

[N Rothschild]

my theory behind this post is that if your system can be easily automated, it prolly doesn't work (on a consistant basis)

 

[oildaytrader]

fundamental information is an important factor to automation in modern automated trading strats, from my reading of quant books.

There are definitely strats running for earnings announcements and probably for macro announcements, it probably is complicated if you don't know what ur doing and if you letting a computer do your trading you should probably know what ur doing.

And fundamental information is used in most, if not all the economic/market models used in the regressions, genetic algos etc. that are used to build automated trading strategies.
But this isn't exactly a secret as it is in most books on automated trading...

EDIT: saying nothing of the numerous automated trading strats based on quantitative financial data i.e p/e etc

All fine in theory.

Fundamental analysis can trigger a buy or a sell , but market may react differently to analyst opinion.It may react earlier than the news announcement , or may lag several weeks.

In practise automated systems have to time and get in the moves when they happen , instead of basing them on anylysis triggers.

O D T

 

[oildaytrader]

my theory behind this post is that if your system can be easily automated, it prolly doesn't work (on a consistant basis)

4 years is what it took me to automate , and it wasn't a simple matter of a simple strategy.More complex than some of sophisticated stuff by banks, is required in a consistently profitable automated system.

 

[Waterfield]

If the trading software/hardware is trading the result of a rate hike, the position you should be in is obvious if it was unexpected. Regardless of whether you take a view that it will go up or down, an automated system to buy or sell on an rise of 1% compared to 0.5% could be programmed so you get the best spot.

I'm a bit 50/50 on the whole, easily programmed systems won't work. I largely agree, however looking at the MQL 09/08 automated system trading championships they all mainly say "we try to keep the system simple".

Unfortunately these were only traded for a 3 month period so they might not be too robust.

 

[Waterfield]

How can program automatically gather the information , process it and execute orders?A highly complex job .

4 years is what it took me to automate , and it wasn't a simple matter of a simple strategy.More complex than some of sophisticated stuff by banks, is required in a consistently profitable automated system.

Dude. You are using metatrader 4, I highly doubt it is more complex than 95% of banks/funds.

 

[N Rothschild]

i serisouly question if ODT even has a live account and knows how to trade judging by half the pish he posts

 

[arabianights]

i serisouly question if ODT even has a live account and knows how to trade judging by half the pish he posts

yup bunch o ****e innit?

 

[rathcoole_exile]

My pleasure .Always glad to be a mentor.

now now children. why can't we all just feel the lurv and get along ?

take a leaf out of my book, and spread light, harmony and understanding instead of all this pain, anger & angst

 

[rathcoole_exile]

I'm a bit 50/50 /QUOTE]

welcome to thailand

 

[oildaytrader]

Dude. You are using metatrader 4, I highly doubt it is more complex than 95% of banks/funds.

I didn't say mine was more sophisticated , on the other hand with all these Harvard, cambridge,stern failures working at these banks it is quite possible.

 

[Benton D Struckcheon]

I was gonna say no, but then I thought, you know, it should be possible to get the traded volume for all options on GLD, VIX, IWM, and RUT off of the TOS interface. It would be hard, but not impossible. I'm sure someone's already programmed something similar.

 

[oildaytrader]

I was gonna say no, but then I thought, you know, it should be possible to get the traded volume for all options on GLD, VIX, IWM, and RUT off of the TOS interface. It would be hard, but not impossible. I'm sure someone's already programmed something similar.

Options trading should be easy to automate , and it is probably highly automated.The black scholes formalae , plus auto volatility calculators, trend /risk calculators and buy sell triggers should be easy to automate.

O D T

 

[wackypete2]

Options trading should be easy to automate , and it is probably highly automated.The black scholes formalae , plus auto volatility calculators, trend /risk calculators and buy sell triggers should be easy to automate.

O D T

All markets are easy to automate. Now getting it to be PROFITABLE...thats a different problem.

Peter