Previous... Practice (Demo) Accounts Before setting out to trade and after you've studied this course (amongst other resources) it's not a good idea to go gung-ho into trading. Set up a Demo Account. Most broker firms have them, as do some software packages like Tradestation. Setting up the practice account will allow you to learn from your trading mistakes to become better trader. Whatever strategy you pick, you will need to learn it well. You need to understand it clearly, inside and out. You need to know it like the back of your hand. This is vitally important because when you’re in the middle of a trade, there are no room for errors and there is no time to ask questions. You have to know it solidly before you venture out. If you don’t have a track record on a practice trading account, there is no reason to believe that you will make money with real trading. Automated Trading Your Trading Rules that meet your Strategy -> Software Package -> Broker There are many trading programs that support automated trading systems. Some will automatically generate and place trades with your broker (Trade Station, Meta Trader, Cool Trade, Interactive Brokers). Others will automatically find trades that fit your criteria, but require that you place the orders with your broker manually (AmiBroker, Tradecision). Moreover, fully automatic trading programs often require that you use specific brokerages that support such features. Brokers may also have these facilities. We're often told to take the emotion out of trading and act on the signals that our set up demands. Automatic trading does this with bells on. Once the system has been developed, tweaked and tested it take no work to trade (until market conditions change), leaving you free to develop other trading strategies. However, if the coding isn't quite right it can lead to large losses and quite honestly, automated systems are hard to code. The following sites are software packages that allow some kind of automated trading:
Designing your Automated System Generally these are designed in 3 main steps:
IF Condition [WHILE Condition] THEN Action So in our example our actions would be: IF MA(10) Crosses Above MA(30) THEN BuyIF MA(10) Crosses Below MA(30) THEN SellIF our trade has 10 units of profit THEN SellIF our trade crosses MA (30) THEN Sell Now that we have a design document in hand, they have to be coded so that a computer can understand them. I'm no expert on this, so I'll revert you to the following Investopedia page: Things to Remember It's worthwhile checking out some of the software packages I've highlighted above to get a better understanding of what coding actually does in all the different packages. If you're serious about coding it's also probably a good idea to join coding forums and visit dedicated coding sites to find out how others are going about it. I'll link some sites below.
Further Reading... The following sites will be required for further automated trading reading:
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Previous... Practice (Demo) Accounts Before setting out to trade and after you've studied this course (amongst other resources) it's not a good idea to go gung-ho into trading. Set up a Demo Account. Most broker firms have them, as do some software packages like Tradestation. Setting up the practice account will allow you to learn from your trading mistakes to become better trader. Whatever strategy you pick, you will need to learn it well. You need to understand it clearly, inside and out. You need to know it like the back of your hand. This is vitally important because when you’re in the middle of a trade, there are no room for errors and there is no time to ask questions. You have to know it solidly before you venture out. If you don’t have a track record on a practice trading account, there is no reason to believe that you will make money with real trading. Automated Trading Your Trading Rules that meet your Strategy -> Software Package -> Broker There are many trading programs that support automated trading systems. Some will automatically generate and place trades with your broker (Trade Station, Meta Trader, Cool Trade, Interactive Brokers). Others will automatically find trades that fit your criteria, but require that you place the orders with your broker manually (AmiBroker, Tradecision). Moreover, fully automatic trading programs often require that you use specific brokerages that support such features. Brokers may also have these facilities. We're often told to take the emotion out of trading and act on the signals that our set up demands. Automatic trading does this with bells on. Once the system has been developed, tweaked and tested it take no work to trade (until market conditions change), leaving you free to develop other trading strategies. However, if the coding isn't quite right it can lead to large losses and quite honestly, automated systems are hard to code. The following sites are software packages that allow some kind of automated trading:
Designing your Automated System Generally these are designed in 3 main steps:
IF Condition [WHILE Condition] THEN Action So in our example our actions would be: IF MA(10) Crosses Above MA(30) THEN BuyIF MA(10) Crosses Below MA(30) THEN SellIF our trade has 10 units of profit THEN SellIF our trade crosses MA (30) THEN Sell Now that we have a design document in hand, they have to be coded so that a computer can understand them. I'm no expert on this, so I'll revert you to the following Investopedia page: Things to Remember It's worthwhile checking out some of the software packages I've highlighted above to get a better understanding of what coding actually does in all the different packages. If you're serious about coding it's also probably a good idea to join coding forums and visit dedicated coding sites to find out how others are going about it. I'll link some sites below.
Further Reading... The following sites will be required for further automated trading reading:
More... |
Comments
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