Automated trading CFDs and Indexes?

[Tradertim88]

I am looking to automate a strategy i have developed for the asx200 index based on intraday trading.

I have read many of the posts on automated systems but most seem to relate to equities and more particularly forex.

Can anyone tell me if the various software systems available for automated forex trading can be used for index trading?

I have backtested my strategy in excel and have used the spreads available to me through my existing IG account.
Im looking into wether MT4 via my IG account will alow me to automate my fairly simple strategy.

Also, any advice on the spreads available for asx200 related indexes (or indeed other indexes) from other brokers? obviously the smaller spread i can access the more successful my strategy is likely to be.

I have some very limited C++ coding experience but would not be confident to code even this simple strategy efficiently and properly, im hoping there is a user friendly solution that avoids need for coding, but if not i will pay someone to code the strategy for me.

Thanks in advance,
Tim

 

[beachlife]

Re: Automated trading CFDs and Indexes???

I dont know how MT4 works with IG but I am using MT4 with FXCM to write EA's for use on indexes and well as FX. There is a neat code generator here http://www.forexeadvisor.com/ that will give you an unlocked code that you can manually edit.

 

[Tradertim88]

Re: Automated trading CFDs and Indexes???

Thanks for the reply, at first glance the code generator looks brilliant. Will definitely check it out more. how do you find the functionality of MT4?

 

[beachlife]

Re: Automated trading CFDs and Indexes???

It's OK. From what I have seen NT has far better stats reporting, eg NT can give stats by day, hour etc whereas MT4 cant, but MT4 is free. No software fees, no data fees and it does the job.

 

[RADO]

Re: Automated trading CFDs and Indexes???

If you want to auto trade the S&P200 your best bet is to do it with the futures contract. If you do it with the CFD you will be limited to MT4, not that that's a bad thing.
Ninja trader and Multicharts are two good platforms for auto trading futures. Below is a screen shot of one of my auto strategy's on a 5 point range bar chart on Multicharts. Green lines are profitable trades, red ones are losers. I wouldn't class this as a good auto strategy though. Once you have your strategy coded and ready to use, it would be a good idea to run it on a VPS (virtual private server).

I hope this gives you some idea.

RADO

 

[Wysiwyg]

Can anyone tell me if the various software systems available for automated forex trading can be used for index trading?

Some Forex revenue collectors (brokers to most) have CFD Indices, oil, gold and silver to bet on using the MetaTrader platform. I would not go straight to VPS, instead run your EA on your computer so you can monitor its performance. If it functions exactly as you want live then consider letting it run unattended on a VPS.

You look like you will get chopped up to me. You have to understand position size, risk, trade management, stop loss, various scenario exit strategies, times to bet, news avoidance, market maker tricks. Some just off the top of my head.

 

[Tradertim88]

I would not go straight to VPS, instead run your EA on your computer so you can monitor its performance. If it functions exactly as you want live then consider letting it run unattended on a VPS.

Thanks for raising the VPS issue, is the main advantage of running a vps once performance has been validated on a standalone computer to give better acess and guard against internet connectivity issues/hardware failure??

You look like you will get chopped up to me. You have to understand position size, risk, trade management, stop loss, various scenario exit strategies, times to bet, news avoidance, market maker tricks. Some just off the top of my head.

Yes i must admit i am a bit nervous about being "chopped up" as you put it. I have been bitten but not chopped by some of the things you listed in the past, especially market maker tricks

RADO, mind if i ask which broker (or revenue collector as Wysiwyg puts it) and what spreads they offer on the S&P 200??

Thanks for all the advice.