Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: ojai who wrote (4684)	7/12/1998 7:54:00 PM
From: TFF	Respond to of 12617

ojai: EricP is a quality guy so I will be interested to see the results of his system.

To: ojai who wrote (4684)	7/19/1998 7:56:00 PM
From: Eric P	Read Replies (1) \| Respond to of 12617

There is someone in the Trading for a Living thread who claims to be developing a computerized trading program. I think his name is EricP, but I'd have to check. He wrote that he has it up and running, totally automatic, decisions, executions, etc. Sounds interesting, although I don't know what his results are so far. ojai: I'll give you a quick update. Anyone can post questions for more details or e-mail me. EricP is a quality guy so I will be interested to see the results of his system. irby: Coming from you, this has to be my best compliment of the year. Thanks! I have been at the beach on vacation this past week and am just catching up on my thread reading. Sounds like we have had some discussions on my favorite topic: Automated Daytrading I'll give you a brief update on the automated daytrading platform I have developed. Essentially, it integrates PC Quote satellite data feed, an expert system for data analysis and places orders through Castle Securities (SOES, SNet, SNET preferenced, ISLD, etc. are all supported). The system runs on a 500 MHz DEC Alpha with 320 MB of RAM for plenty of horsepower. I believe some of the key advantages of this platform are: 1) Ability to program an individuals unique trading system into the platform for continuous monitoring of hundreds or thousands of stocks. This allows the trader to be extremely specific about the exact trade setup he/she is looking for prior to order entry. The system I have played with uses 20+ conditions which must all be met prior to initiating a trade. Despite these numerous conditions, it finds 20-40 trades per day to enter. 2) Reproducibility Since it is computerized, the platform will rigidly follow your trading plan every single time. No emotion. No second guessing. No hesitation. An applicable quote I have always liked is "Plan your trading. Trade your plan. This platform gives you the ability to do just that. 3) Speed. Every part of this system was designed for speed. The satellite data feed gives about 1-2 seconds faster information than I get with my internet Level II. The expert system and data analysis computer are very fast. Finally, the order entry and trade monitoring are all automated as well. The combination of these three pieces results in a platform that can place an order in less that 0.1 second from the time that all trade conditions are met. 4)Paper Trading Paper trading is supported and I believe is a great asset. It's a very good way to screen potential systems prior to real time implementation. Systems that paper trade poorly are definitely BAD systems. Systems that paper trade very profitably are worthly of further study and possible live trading. I believe some of the key disadvantages of this platform are: 1) Unable to reproduce the performance of a trading system built on "gut feel" or "instinct." The traders system must be a set of quantifiable rules or conditions that the computer can check against. 2) It can suffer from some of the same problems you may experience manually, such as inability to get orders executed. However, since the trade analysis and order entry are virtually instantaneous, it may give you a 'head start' on other traders to get your order in the queue and executed more quickly. 3) Although, paper trading is supported and extremely valuable IMO, it will always provide more favorable results than actual trading. This needs to be recognized. 4) This platform will not make a bad trading system profitable. In fact, I believe this platform will make a bad system even more consistently bad. This is the purpose of the paper trading feature. Note that the platform includes the ability to turn it on/off at will with a mouse click, ability to limit trades to one-at-a-time, a user defined daily loss limit, etc. So, no need to fear a run away computer! Anyway, the system has been tested internally with real orders for about a month. We will begin beta testing the system with outside users in mid to late August. For a successful daytrader using a trading plan, I believe this platform provides a great advantage over manual trading in terms of speed, consistency and range of stocks to monitor (not to mention reduced stress). Anyone wishing to hear more information or interested in our upcoming beta test, please post a message or e-mail me. Thanks! -Eric ericpatterson@erols.com