Tuesday
Mar302010
How to Start an Algorithmic Trading Business within a Week
Tuesday, March 30, 2010 at 8:43AMYou are a successful trader or an aspiring trader. You use technical or fundamental analysis to generate profit. You spend most of the day watching the ticker screen.
If these statements describe who you are as a trader, you should consider generating more profit by building an algorithmic trading platform. Let technology work for you by leveraging your trading knowledge.
There are many ways to start algorithmic trading, but this is the method I recommend:
• Find an online broker with strong technology that can enable you to deploy your own algorithm. I wrote the following post on how to choose the right online broker for your algorithmic trading business: http://bit.ly/8Qli9Y.
• I cannot emphasize this point enough: Your broker must have pre-built algorithms you can use right from the get-go and a sandbox to test these algorithms with your trading methods.
• Go test your ideas in the sandbox using these pre-built algorithms.
• Once you are comfortable with how your algorithm performs, deploy it in the market.
• Keep track of your results.
I use Interactive Brokers (IB) for my algorithmic trading business. There are plenty of good online brokers out there, and IB is one of the best. Check out this IB video entitled “How to Capture Profit using the Scale Trader.” I can think of many ways to trade using this algo. What about you?
Reader Comments (5)
Their pricing is not the best for high frequency trades and they are willing to give a high leverage (6 to 1 is the max for registered guys), but you are right, platform is extremely stable.
Sorry, they are NOT willing to give high leverage.
Arthur, just came back to my desk and saw all your comments. Thank you so much. Yes the platform is stable. I agree, not the cheapest.
Arthur, who do you use?
I do use them, with very little buying power. Today another prop shop closed, Assent LLC they were owned by SunGard and were giving 30-40 to one intraday leverage. So the choice is getting smaller and smaller. I came to your site by accident, my friend forwarded to me the link from Asif on APPL.
( http://seekingalpha.com/article/198910-the-ipad-revolution-naysayers-miss-the-big-picture). Since that iPad came out I've been telling him to buy Appl puts because you need iPad only if your iMac is menstruating. And this German maker addresses some of the problems.
http://finance.yahoo.com/news/German-tablet-PC-sets-out-to-apf-890973130.html?x=0&.v=7
One good thing was the promotion of that device I've never in my life heard Charley Rose say ""a product that you might think you
can live without until you get it" I hope he got more than an iPad for that plug.
I've never read or heard about you and was pleasantly surprised to see that people actually wrote "If you need help with... let me know". I guess its a Canadian thing, in NYC people write this when they want to sell you something. :)