iCharts Discussions

[newinvestor]

I guess the automated software will be a great help.

The problem now is that even if we have a particular trading strategy in mind, we often tend not to follow it in terms of entry, stop loss setting, and exit on profit.

Many decisions are made emotionally.

If we can have a software , where we can code our trading strategy , and the Computer does the buy and sell ( or sell and buy) , as per the pre set triggers, then trading can be less emotional and more scientific.

[vishytns]

All,
Very good topic. It is debatable also.
This system is very familiar to forex traders. I would like to mention some of the points of these automated trading sytem.


a. As per veeru sir you can trade without mind. So no emotional trading.
b. You can run your script and leave your system. Actually very helpfull in overnight trading. You can sleep when your automated trading system is trading for you.
c. You need to have a very good trading strategy, with very good entry, exit criterias. For example you need to have a strategy very similar to SPECULATOR sir's ema trading.
d. One should know how to write programs which is a basic need. Apart from that you should also need to master the language. Once mastering the language you need to write a script that programs your trading strategy. You need to test your script on already available data, before you deploy it on the realtime data feeds.
e. Your automated script needs to take care of following things
1. Volatality of the stock.
2. Market depth of the stock.
3. Your entry criteria. For example, if you want to trade a "EVENING STAR", you need your program to do the following
a. Read the candles OHLC values, and indentify if the previous candle and current candle form a evening star. so u need to embed a logic that can recognize various types of candles. Automated trading system provides API's that u can use to find OHLC values, but not candle recognistion.
4. If your trading strategy involves any usage of indiacators, u should know how to program them. Automated trading system provides you current value of indicator but not the logic for various descisions you usually take on obeserving indicators. for example, RSI divergence, system provides u RSI data at current candle, but not the divergence. One more example is SLOPE of a moving avergae line, u need to program to find slope of moving average line.
f. One should clearly understand the LIBRARY of API's provided by the automated trading language, so it involves a good learning curve to master them.

One can find these things by googleing "Automated Trading Language". I know one of the forex trading software that provides you automated forex trading for free. You can write scripts and execute them.

Just google various combinations, u will find how to program automated trading systems.

Vishy

[vishytns]

All,
If you want to identify some price patterns like Ascending Triangle, Descending Triangle, Symmetric Triange, and many more you post you message in casper thread and ask for help, just imagine how do you automate this process.
Vishy