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Automation trading

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1 Automation trading on Thu Jul 29, 2010 10:22 am

Admin

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Admin
When we think about automation, what are the intention and/or expectation? Why do we pay effort into this?
I think, these are some of the benefit:
1/ 100% rules based, 100% disciplined.
2/ 100% online time or almost so.
3/ Can trade at very high frequency if needed.
4/ Can collect data for creating new strategies much faster than by bare eyes, watching the real time price movements.
5/ Can incoporate with other applications for further actions (for example: generate signal, send to others or upload data to an ftp site,...) automatically.

That are a lot of benefits I think. But it is not easy at all (atleast to me). It requires a lot of efforts and learning.

Still, it is a good path to persuit.

http://fxbusiness.forumotion.com

2 Re: Automation trading on Thu Jul 29, 2010 11:17 am

Admin

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Admin
So the main thing is to create a program to trade for us. We need to analize in very detail how trading process looks like before any further actions.

http://fxbusiness.forumotion.com

3 How trading decisions are made? on Fri Sep 10, 2010 5:42 pm

Admin

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Admin
Why do we open a buy trade? Why do we open a sell trade? Why do we close a buy trade? Why do we close a sell trade? Why do we hedge? Why do we take a loss?

Trading is a process of collecting information, making descision, and collecting information and making descision,... in order to have the equity grows.

What kind of descision we can take? Many, but we can classify them into only severall types:

1/ Exposre>=0, increase it: Buy certain unit;
2/ Exposure>=0, reduce it: Close certain Buy trades, or Sell certain units that is smaller than current Exposure;
3/ Exposure<=0, increase it: Sell certain units;
4/ Exposure<=0, reduce it: Close certain Sell trades, or Buy certain units that is smaller than current absolute value of Exposure;
5/ Add fund;
6/ Withdraw fund.

There should be 2 separate things to be considered in making descision: the Market and the Account Status.

Collecting Market's information, analyzing it and predict the price move is done by Signal Generator.
1/ When the Signal Generator "think" that price is going up--> Signal = "Buy";
2/ When the Signal Generator "think" that price is going down--> Signal = "Sell";

Collecting Account's information, analyzing it to allow/disallow using more margin or to require reducing margin is done by Account Status module.
1/ If Pip Value is too high and/or PTMC (pip to margin call) is too small then no more margin is allow or even margin has to reduce.
2/ 1/ If Pip Value is still within limit and PTMC is still larger than limit then more margin is allow to be used.



http://fxbusiness.forumotion.com

4 Re: Automation trading on Fri Sep 10, 2010 8:38 pm

Admin

avatar
Admin
Put it in code:

if Signal=="Buy"
if (Exposure>=0 and PV<PV_Max and abs(PTMC)>PTMC_Min) Buy(Minordersize);
if (Exposure>=0 and (PV>=PV_Max or abs(PTMC)<=PTMC_Min) DoNothing;
if (Exposure<0 and abs(PV)<PV_Max and PTMC>PTMC_Min) Buy(-Exposure+Minordersize);
if (Exposure<0 and (abs(PV)>=PV_Max or abs(PTMC)<=PTMC_Min) Buy or CloseSell some Units;

http://fxbusiness.forumotion.com

5 Re: Automation trading on Sat Sep 18, 2010 3:30 pm

zero


Level 1
Level 1
anybody in this place?

hello?


6 Re: Automation trading on Sat Sep 18, 2010 5:27 pm

RJ

avatar
Level 3
Admin wrote:Why do we open a buy trade? Why do we open a sell trade? Why do we close a buy trade? Why do we close a sell trade? Why do we hedge? Why do we take a loss?

Trading is a process of collecting information, making descision, and collecting information and making descision,... in order to have the equity grows.

What kind of descision we can take? Many, but we can classify them into only severall types:

1/ Exposre>=0, increase it: Buy certain unit;
2/ Exposure>=0, reduce it: Close certain Buy trades, or Sell certain units that is smaller than current Exposure;
3/ Exposure<=0, increase it: Sell certain units;
4/ Exposure<=0, reduce it: Close certain Sell trades, or Buy certain units that is smaller than current absolute value of Exposure;
5/ Add fund;
6/ Withdraw fund.

There should be 2 separate things to be considered in making descision: the Market and the Account Status.

Collecting Market's information, analyzing it and predict the price move is done by Signal Generator.
1/ When the Signal Generator "think" that price is going up--> Signal = "Buy";
2/ When the Signal Generator "think" that price is going down--> Signal = "Sell";

Collecting Account's information, analyzing it to allow/disallow using more margin or to require reducing margin is done by Account Status module.
1/ If Pip Value is too high and/or PTMC (pip to margin call) is too small then no more margin is allow or even margin has to reduce.
2/ 1/ If Pip Value is still within limit and PTMC is still larger than limit then more margin is allow to be used.




Hi Admin,

I found this very interesting, very systematic, very logical.

I will keep watching.
Thank you for sharing with us.

RJ

7 Re: Automation trading on Sat Sep 18, 2010 6:09 pm

Admin

avatar
Admin
zero wrote:anybody in this place?

hello?



Hello zero,

Welcome you to this small forums. We hope you will like this place and stay active. We are please to have you.

To whom did not know yet, zero is well known at Oanda forums.

Cheer!



Last edited by Admin on Sat Sep 18, 2010 6:51 pm; edited 2 times in total

http://fxbusiness.forumotion.com

8 Re: Automation trading on Sat Sep 18, 2010 6:20 pm

KingInvestor


Admin
zero wrote:anybody in this place?

hello?



Hello zero,

Welcome to the forums although I am new too Smile.
Your account gain real big. I will keep watching your account. I hope I can find some good trader here.

Keep it up.

King

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