New to Systems Trading

[davewolfs]

Hello everyone,

I am new to the forum and have found a lot of interest from reading the information posted here. It is clear that there are a lot of veterans here who really know your stuff.

Being new to algorithmic trading I have a lot of questions and I hope that perhaps some of you could help me in answering them.

For someone just starting out are there any specific well known tools/platforms that can be used to simulate my tests and generate reports similar to those that some of you have listed (The reports posted here would be a good example).

Where are there reliable sources to obtain your data? Once you are happy with your results, is there a means to paper trade on the open market?

Finally, what type of background would you say most systems traders have? I am a software engineer by day but have been becoming more interested in the financial markets over the past year. I guess what I am getting at is there hope for those who are self taught or do most financial system developers have backgrounds in post graduate studies such as financial engineering.

Any advice and recommended software or books would be greatly appreciated.

Cheers,

Dave

 

[BerkshireBull]

I always recommend NinjaTrader (www.ninjatrader.com), but that's because it's free for system development, backtesting and has several free data sources. I've been using it now for a few years, and also purchased a multi-broker license.

However, there are plenty more including eSignal, Tradestation, MetaQuotes. all of them have slightly different programming interfaces etc. At the end of the day you should probably try all of them as I think you can get a free trial for each, and choose which one you're happiest with.

 

[davewolfs]

Thank you for the quick reply. I was looking into NinjaTrade and like the fact that it could interface with OpenTick although unfortunately, registration for OpenTick appears to be down.

As per using NinjaTrader would I need to backfill the history with an external file? And if so, where could I obtain this?

I always recommend NinjaTrader (www.ninjatrader.com), but that's because it's free for system development, backtesting and has several free data sources. I've been using it now for a few years, and also purchased a multi-broker license.

However, there are plenty more including eSignal, Tradestation, MetaQuotes. all of them have slightly different programming interfaces etc. At the end of the day you should probably try all of them as I think you can get a free trial for each, and choose which one you're happiest with.

 

[BerkshireBull]

Thank you for the quick reply. I was looking into NinjaTrade and like the fact that it could interface with OpenTick although unfortunately, registration for OpenTick appears to be down.

As per using NinjaTrader would I need to backfill the history with an external file? And if so, where could I obtain this?

Most of the data providers will give you some historic data, usually about 10,000 bars worth. Which is a lot of 'Day' bars, but not a lot of '1 Minute' bars!

There are plenty of historic data providers specialising in a whole range of financial instruments, I used FOREX Historical Data, Major Indices and Futures Historical Intraday and Daily Market Data - Through Download and on DVDs/CDs. because they had what I wanted, it was recommended to me by a friend, and is a reasonable price. If you need more exotic instruments, then the price increases exponentially from some of the other data providers.

 

[davewolfs]

Sorry but I missed the sticky! Either way, any advice is appreciated.

 

[Adamus]

Hi BerkshireBull,

is that tick data that disktrading provide? From a brief look, it seems that they're selling data for about a tenth of the price that it costs at tickdata.com, so I'd guess it's not - could be minute bars, or 5 mins?

 

[Chorlton]

Hello everyone,

I am new to the forum and have found a lot of interest from reading the information posted here. It is clear that there are a lot of veterans here who really know your stuff.

Being new to algorithmic trading I have a lot of questions and I hope that perhaps some of you could help me in answering them.

For someone just starting out are there any specific well known tools/platforms that can be used to simulate my tests and generate reports similar to those that some of you have listed (The reports posted here would be a good example).

Where are there reliable sources to obtain your data? Once you are happy with your results, is there a means to paper trade on the open market?

Finally, what type of background would you say most systems traders have? I am a software engineer by day but have been becoming more interested in the financial markets over the past year. I guess what I am getting at is there hope for those who are self taught or do most financial system developers have backgrounds in post graduate studies such as financial engineering.

Any advice and recommended software or books would be greatly appreciated.

Cheers,

Dave

Hi Dave,

I noticed that you have referenced one of my threads

The software which generated the report was called TradeSim. TradeSim was initially developed to work alongside Metastock but I use it with Amibroker.

Below is the website link but if you need to know anything specific about the software, then just let me know ...

TradeSim - Advanced System Tester and Dedicated Back Testing platform for Metastock and other Charting Software.

Chorlton

 

[BerkshireBull]

Hi BerkshireBull,

is that tick data that disktrading provide? From a brief look, it seems that they're selling data for about a tenth of the price that it costs at tickdata.com, so I'd guess it's not - could be minute bars, or 5 mins?

The FX data I bought from them included tick, minute and daily.

 

[Adamus]

The FX data I bought from them included tick, minute and daily.

How would you explain the price disparity with tickdata.com, if you don't mind me asking?

Were you happy with the quality of the data from disktrading? I mean, do you think they managed the back-adjustment satisfactorily, were there any big gaps in the data (up or down as well as time periods)?

Regards
Adam

 

[BerkshireBull]

How would you explain the price disparity with tickdata.com, if you don't mind me asking?

Were you happy with the quality of the data from disktrading? I mean, do you think they managed the back-adjustment satisfactorily, were there any big gaps in the data (up or down as well as time periods)?

Regards
Adam

I only required the data from year 2000 onwards as I am mainly interested in the major EUR/xxx currency pairs. I didn't find any gaps in the data. If you have any technical questions, it's probably best to email Disktrading directly, but from a customer experience, I was more than happy with the data.

 

[Adamus]

Of course, it depends what it takes to make you happy. But otherwise, no further questions, m'lud.

 

[Tradez]

Hi Dave: I've been trading for six months - I knew nothing when I started and lost money until I put to head to studying. My problem was not believing in my picks and I got out too soon! Now, on some days every month, I can bring in $500. Depending on the stock, I may stay in one day or a few days at most. Most important thing: ALWAYS PUT IN YOUR STOPS, NO MATTER WHAT YOUR 'FEELING' about a stock. Don't get emotional - Don't fall in love with a company. Your job is to make money. Check out pfsoft.com - You have numerous choices of reliable data vendors, coupled with the software, whereby you can create your own strategies and indicators. They're going to eventually bring in some scientific methodology as well. Check out TradingSolutions/Tradecision,Biocomp - for the genetic algorithm-style of trading.
Have a look at Finviz.com - It's a free, web-based screener of stocks. In this climate, screen for debt-free companies. Also look for company backlogs once you find stocks you're interested in. Check out www.Kreslik.com - the founder of this website has a math background. Check out Jim Cramer at TheStreet.com - Jim Cramer is a firm believer in sound company fundamentals. Best wishes.