Starting with Automated Trading

Trading 2 Comments »

In the past6 months I have been using most of my free time to learn about the Stock Market, Forex Market and Automated Trading Tools.

I have faced several new terms and theories about Automated Trading Systems (ATS), as well as many testimonials from people who earned a lot of money and others who lost.
I will be probably writing more about this subject on the coming months, as a way to record my findings.
If I suddenly stop writing about it, is because I became rich (or bored) :)

All topics regarding Automated Trading will be placed under the “Trading” category.

I will try to write (and learn) about the following topics, in the order they are listed below:

1. Automated Trading Systems (ATS): I will first write a review about all the tools I have tested. So far I have had a chance to look deeper into these: MetaTrader, WealthLab, OpenForexPlatform, EclipseTrader, JBooktrader, ActiveQuant, AIOtrade, Marketcetera and some others.
I have created a check list to evaluate these tools, taking in consideration some aspects like, but not limited to these:

Is the source code available?
Is there support available through forum or mailing list?
How many people are currently developing this tool?
Does it have a user interface?
Can it place orders programatically in a real broker?
How easy is it to run a strategy against historical data?
Does it follow market patterns like the FIX protocol?
Does it support Parameters optimization, Genetic Programming and Neural Networks?

2. Brokers: The most popular brokers in the market and their taxes. I have evaluated Interactive Brokers, Banif, Itaú, FXDD and WinTrade, so far.

3. Strategies, Setups or Advisor: Every tool gives it a different name. I prefer Strategy. It is basically the algorithm that implements the Trading Logic. I have tested some Enterprise Advisors for Meta Trader, some setups from Leandro & Stormer DVDs (famous traders in Brazil) and some other Strategies posted on contests around the internet.

4. Books and Articles: I have already bought some books and read tons of articles. Only the most relevant will be reviewed.

The final goal is to write a software capable of analyzing real-time market data and place orders automatically, with a low risk and high profits.

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