Here is few items you need to automate your trading
1) You have a basic idea about stock markets and trading manually around some specific method/idea
2) Basic understanding of software programming
3) Softwares like excel spreadsheet, Microsoft access to start with or oracle, weblogic server, or custom software like amibroker(These are the ones I use, I started with basic microsoft applications and found that they sucked for back testing performance and used oracle and weblogic, which runs really fast but requires a dedicated machine preferably, the startup time of a pc with oracle installed is very long. Currently I use amibroker for most of the time, this has a cool front end and super fast back testing capabilities.
4) historical data from stock market(at least for 2 years)
Sunday, January 31, 2010
Monday, January 25, 2010
Sunday, January 24, 2010
Company Review - Infosys Technologies Ltd
When you write about Indian stock markets, Infosys technologies Ltd(NSE - INFOSYSTCH, Nasdaq - INFY) is one of the companies you always see on the top of the lists. It is like google for US markets.
Many reasons why I wanted to write about this company here.
Many reasons why I wanted to write about this company here.
- I have worked with this company for more than 5 years!(as a matter of fact the longest employment I had so far).
- This is the first security I owned
- I had no interest in stock market and I was forced to buy the stock as I had stock options at good profit.
- Very capable management and ability to see the control of future, First in many new initiatives which became a standard later
- IT at its best, I experienced the impact of IT on a daily basis, in terms of new technologies and quality.
Friday, January 22, 2010
Wednesday, January 20, 2010
TANEJA AEROSPACE
Bought TANEJA AEROSPACE(BSE 522229) today.
Currently at less than 10% pf the previous peak, a risky buy. Looks like it is crossing the resistance line with good volume.
Friday, January 15, 2010
Heikin - Ashi Charts - A better way of Candle Charts
Standard Japanese candle charts are created with OHLC(Open, High, Low and Close prices). Heikin-Ashi uses a modified OHLC values, which gives a clean look to the charts by eliminating the disturbances and by projecting the trend. See the two charts below.
Standard candlestick chart
Heikin-Ashi candlestick chart
Here is the formula(AFL) to create Heikin-ashi chart for amibroker users.
HaClose = (O+H+L+C)/4;
HaOpen = AMA( Ref( HaClose, -1 ), 0.5 );
HaHigh = Max( H, Max( HaClose, HaOpen ) );
HaLow = Min( L, Min( HaClose, HaOpen ) );
PlotOHLC( HaOpen, HaHigh, HaLow, HaClose, "Modified " + Name(), colorBlack, styleCandle );
_SECTION_BEGIN("MA15");
P = ParamField("Price field",-1);
Periods = Param("Periods", 9, 2, 200, 1 );
Plot( MA( HaClose , Periods ), _DEFAULT_NAME(), ParamColor( "Color", colorCycle ), ParamStyle("Style") );
Standard candlestick chart
Here is the formula(AFL) to create Heikin-ashi chart for amibroker users.
HaClose = (O+H+L+C)/4;
HaOpen = AMA( Ref( HaClose, -1 ), 0.5 );
HaHigh = Max( H, Max( HaClose, HaOpen ) );
HaLow = Min( L, Min( HaClose, HaOpen ) );
PlotOHLC( HaOpen, HaHigh, HaLow, HaClose, "Modified " + Name(), colorBlack, styleCandle );
_SECTION_BEGIN("MA15");
P = ParamField("Price field",-1);
Periods = Param("Periods", 9, 2, 200, 1 );
Plot( MA( HaClose , Periods ), _DEFAULT_NAME(), ParamColor( "Color", colorCycle ), ParamStyle("Style") );
Wednesday, January 13, 2010
Beware of the Markets!
I got 3 buy signals on Channel Guide India Ltd, in last 6 months and I was feeling bad since I din't buy it.
See where it is now. This should be a classic example of how risky the market is and one should be fully aware of this before starting to to trades. I don't see anything other than market manipulation behind this.
Wednesday, January 6, 2010
What is a Trading System
Wikipedia describes a Trading System as "A trading system is a group of specific rules, or parameters, used by traders to identify entry and exit points to trade a security or futures".
It is also known as Algorithmic Trading. A completely automated trading system will be the one which is able to place orders also by itself based on the signals generated by the system.Most trading systems are created based on technical analysis, or just utilize the price discrepancies in the market.
e.g. If a security is being traded in two exchanges and there is a small difference in price, buying from one market and selling in the other will generate a small profit.
We will discuss more about creating trading system based on technical analysis.
Monday, January 4, 2010
Sunday, January 3, 2010
Indian Markets opening an hour early today 01/04/2010
BSE and NSE exchanges will open at 09:00 AM(10:30 PM EST) today. This should be helpful especially for Indian investors in USA.
Friday, January 1, 2010
Percentage Gain - The Magic of Compounding
Below table shows the total return value of $10,000 invested with different gains assuming the returns are reinvested at the end of each year.
Indian Markets - NSE/BSE Holidays for 2010
| 1/26/2010 | Republic Day |
| 2/12/2010 | Mahashivratri |
| 3/1/2010 | Holi |
| 3/16/2010 | Gudi Padwa |
| 3/24/2010 | Ram Navmi |
| 4/1/2010 | Annual Closing of Banks |
| 4/2/2010 | Good Friday |
| 4/14/2010 | Ambedkar Jayanti |
| 5/27/2010 | Buddha Pournima |
| 8/19/2010 | Parsi New Year |
| 9/10/2010 | Ramzan ID |
| 9/30/2010 | Half Yearly Closing of Banks |
| 11/5/2010 | Diwali / LaxmiPuja |
| 11/17/2010 | Bakri ID |
| 12/17/2010 | Moharram |
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