I’d like to share some of my thoughts. I am a professional software developer not a trader. Last few months I tried to learn how share market works and create a fully automated computerized day trading system. As I have lack of deep knowledge in financial markets probably I’m not too good at generating new ideas but I am good at picking up the existing strategies, encoding and backtesting them. I was able to test some popular strategies (gaps, Bollinger Bands, MACD crossover etc) and even some internet guru blackboxes (http://www.intradaytrades.com). But the outcome is quite disappointing so far. When you test different strategies on number of securities over period of time, the result is . In theory day trading can be automated as it’s not reallyabout zero affected by current market trend. But reality is that different strategies give you approximately same results in bearish 2001, 2002, 2007 and bullish 2005, 2006. So at the moment I decided to stop with testing and get more knowledge about the subject. But soon I understand that it can take few fulltime years to become an educated trader. Not sure I can afford it (family, mortgage etc ) Next idea was to join hands with a professional trader. I believe that two (or more) professionals can work out something valuable.
My contribution can be:
• 10 years commercial software development experience
• General understanding of how shares work and the ability to pick up and encode ideas for careful testing, examination and optimization.
• Fully automated contemporary framework with the ability to collect real-time and historical data, make decisions based on your instructions (high level programming language) and execute orders with popular brokers (US based indeed: IB, MBT etc). The framework already has most of popular indicators and functionality to backtest and optimized your strategies.
• Historical data (trades, 1 and 5 min bars) for number of instruments.
• Help with installation and set up of the framework at your side.
My target is to create one or few strategies which can be run fully on their own and give your stable low income (5-10% a year from your cash, or more using 2x or 4x margin)
I am not interested in extra money for the ATS development (I am pretty happy with my current position and salary ) but I’m definitely interested in market education and finding a professional trader to learn from.
Please don’t blame me as a novice who wants your system for nothing . I don’t ask for your “Holy Grail” trading system. As far as I know many traders have less profitable system they don’t use in everyday practice. My idea is to get some extra steady income using one of these.
Please keep in mind that some strategies (like pattern trading) heavily depend on person’s skills and experience and are extremely hard to be automated.