how to start algo trading ?

[jahan]

Hello Jahan..What is the monthly expenditure on algo trading as well as initial capital requirement to set up algo?

Hello,

At present iam having only data charges(1000 Rs for 3months) and Rs 365 for backup internet(Tata Photon plus).

Intial capital for setting up algo...1) Computer Machine---around 90K

2) Algo which cathes signals from
Amibroker to terminal----30k(lifetime license)

3) strategy/Afl-----My own.

i spent lot of money on Computer,....thinking of 64bit but no use,... in india no algo is 64bit,....they work/can be installed in 64 bit,...but never uses all cores of CPU which slows down the Algo processing,....in present scenario all algo's are programmed in 32 bit....so the point is we can use medium configuration computer which comes around 30k.

and when comes to algo i find that every body is selling the same thing by only changing the name,.... except Symphony(again symphony is good for fixed lot trader's)....i use dynamic position sizing means my quantity changes from trade to trade....and i use 60 symbols in watchlist....symphony people clearly told me that its not possible to provide the Algo for me to use their algo ...u need constant/fixed position sizing to be able to use it,....then i talked with a programmer who also sell algo...and told him that remove every feature that algo is having and just put Symbol,price,Qty....that's what i need to execute an order...he did that and i purchsased 10 copies paying 30k each for lifetime license.
my algo is simple,it enter's the trade,..exits the trade, with only three variables...Symbol,price,Qty....the rest is taken care by My AFL.

see my scenario is different...iam sure ur scenario is also different,,,becoz no trader is same....so pls research a bit more to find resources that fulfill ur needs.

and when comes to AFL .... the entry and exit(sometimes i use MACD for exits) are based on recent swing high's and lows nothing special.... what iam good at is Position Sizing...if u want information on Position sizing please read Van K Tharp book "Definitive guide to position sizing".

Regards,

 

[jagankris]

Hello,

i purchsased 10 copies paying 30k each for lifetime license.

Regards,

Dear Jahan ji,

Why bought 10 copies of the same algo ?

Algo is just the interface between Amibroker and NSET/ODIN.
Position sizing is done in Amibroker AFL itself.
or
Is it not possible to do dynamic position sizing based on the success/failure of previous trade in amibroker ?
or
Even if it is not possible to do dynamic position sizing in amibroker and
Even assuming if algo is storing/checking trades placed in some custom database for position sizing why 10 copies of the same ?

Thanks in advance.

 

[ayanarman007]

Thanks Jahan..

 

[jahan]

Dear Jahan ji,

Why bought 10 copies of the same algo ?

Algo is just the interface between Amibroker and NSET/ODIN.
Position sizing is done in Amibroker AFL itself.
or
Is it not possible to do dynamic position sizing based on the success/failure of previous trade in amibroker ?
or
Even if it is not possible to do dynamic position sizing in amibroker and
Even assuming if algo is storing/checking trades placed in some custom database for position sizing why 10 copies of the same ?

Thanks in advance.

Hello,

10 copies for Ten people(to my friends and some are taken by mentor's students).

Regards.

 

[pm_shah]

Dear Jahan,

Could you please throw light on Dynamic Position Sizing? How do you arrive to the trading quantity/lots?

I know of simple technique which considers risk per trade in terms % of portfolio and then find out the SL for that order... based on this information quantity is calculated...

Also do you consider, probability of success of trader, your gut feeling/conviction etc..

I strongly believe in position sizing which make or breaks a trader in long run.

 

[vijayanscbe]

and when comes to AFL .... the entry and exit(sometimes i use MACD for exits) are based on recent swing high's and lows nothing special....

Friend jahan

So you are using algo to manage your trades. Your using trading method/system
with some discretion, not completely a mechanical system am i right ?, In short not set and forget, but some intervention is needed.

Thanks.

 

[alroyraj]

Hello,

At present iam having only data charges(1000 Rs for 3months) and Rs 365 for backup internet(Tata Photon plus).

Intial capital for setting up algo...1) Computer Machine---around 90K

2) Algo which cathes signals from
Amibroker to terminal----30k(lifetime license)

3) strategy/Afl-----My own.

i spent lot of money on Computer,....thinking of 64bit but no use,... in india no algo is 64bit,....they work/can be installed in 64 bit,...but never uses all cores of CPU which slows down the Algo processing,....in present scenario all algo's are programmed in 32 bit....so the point is we can use medium configuration computer which comes around 30k.

and when comes to algo i find that every body is selling the same thing by only changing the name,.... except Symphony(again symphony is good for fixed lot trader's)....i use dynamic position sizing means my quantity changes from trade to trade....and i use 60 symbols in watchlist....symphony people clearly told me that its not possible to provide the Algo for me to use their algo ...u need constant/fixed position sizing to be able to use it,....then i talked with a programmer who also sell algo...and told him that remove every feature that algo is having and just put Symbol,price,Qty....that's what i need to execute an order...he did that and i purchsased 10 copies paying 30k each for lifetime license.
my algo is simple,it enter's the trade,..exits the trade, with only three variables...Symbol,price,Qty....the rest is taken care by My AFL.

see my scenario is different...iam sure ur scenario is also different,,,becoz no trader is same....so pls research a bit more to find resources that fulfill ur needs.

and when comes to AFL .... the entry and exit(sometimes i use MACD for exits) are based on recent swing high's and lows nothing special.... what iam good at is Position Sizing...if u want information on Position sizing please read Van K Tharp book "Definitive guide to position sizing".

Regards,

Hi Jahan,
Understood what you said. Looks like it's a trade off between high upfront investment or higher monthly charges if we take the robots from the many vendors. Again it's better to tailor it for out trading strategy.

Friend jahan

So you are using algo to manage your trades. Your using trading method/system
with some discretion, not completely a mechanical system am i right ?, In short not set and forget, but some intervention is needed.

Thanks.

Hi all, apologies for the earlier msg I had typed in the cab but for a moment the net connection went.
What I meant to say earlier was the system was automatic but in the robo you probably you need to manually enter the quantity based on the updated position sizing of van Tharp and this helps to vary the quantity based on the capital etc.not sure if the risk can be segregated script wise or not based on this. So I think your robots is an re engineered version of the ones gdfl gives right
Of course I assume jahan there is some slippage is expected.

 

[jahan]

@vijayanscbe

No, sir my system is completely automatic....the market conditions will decide whether to exit upon MACD or Swing's(depending upon % gain i have in my position/trade)....from the beginning of my Trading career i didn't used any sort of Discretionary things in my trading......

@ PM Shah

sir,..pls go through the Book i mention in Post #11....market doesn't care how much % stop u use...

Ergggu7gguuvuvivviiiviv

What it means?......

Regards,

 

[alroyraj]

@vijayanscbe

No, sir my system is completely automatic....the market conditions will decide whether to exit upon MACD or Swing's(depending upon % gain i have in my position/trade)....from the beginning of my Trading career i didn't used any sort of Discretionary things in my trading......

@ PM Shah

sir,..pls go through the Book i mention in Post #11....market doesn't care how much % stop u use...



What it means?......

Regards,

Hi Jahan,
Two things we worry when we use our own algorithms to place orders, what is the slippage and also can your robots amend and cancel orders as per the afl logic?