Autotrader services?

[Tradesurfer]

Does anyone use a service currently which will automatically trade your strategy?

Strategy held on THEIR servers (so your platform doesn't have to be connected to the internet)

One of the things I've been hearing from people is that they would implement automated strategies BUT are worried if they leave for work and the system times out of the internet-may not trade.

Solution that seems to be wanted by the non-daytrade crowd is a set it and forget it service

wanted to see if anyone is using one, know of one, and have feedback to share?

thx

 

[ojm]

What you are looking for is a VPS (virtual private server). You'd probably want a Windows Server 2003 one, which you could VPN into (remote desktop), and setup your trading systems.

As long as the server is reliable (which if you get a good provider, it will be), your system will trade no issues. You can also check on it using any computer with VPN or certain mobile phones.

 

[Tradesurfer]

I hadn't thought of that solution but will look into it. The challenge some people have is that their even highest quality,high speed internet can time out, or their computers freeze etc etc- sounds like this would be almost like renting a server somewhere? Any idea on cost?

I was wondering if anyone has heard of or uses a service to autotrade their strategies. Say you go on vacation (holiday) for a couple weeks, still trading the positions etc.

One of the challeges for say someone using weekly charts who wants to trend trade instead of buying and holding mutual funds, they may only have several trades a year per symbol or position- so a solution for a plug and play set it and forget it so a trader isn't dependent on THEIR technology.

I've heard of some places that may offer this but have never tried any or had feedback from people who have.

 

[ojm]

I hadn't thought of that solution but will look into it. The challenge some people have is that their even highest quality,high speed internet can time out, or their computers freeze etc etc- sounds like this would be almost like renting a server somewhere? Any idea on cost?

Thats the advantage of a VPS. It is pretty much a server, which you can log into and run the programs that you wish. Many people run websites from VPS' (I run a linux VPS for a largish forum), and its uptime is great.

A VPS for an autotrader would be great: fast, reliable internet (which can be located in New York or whatnot for NYSE etc.), stable computers with UPS power.

A VPS can be quite cheap, maybe from US$30 upwards for a Windows Server 2003 one.

 

[RazzaDazzla]

From an Engineer's point of view, this is indeed extremely interesting. I have average trading experience but have lots of IT experience.

A hosted server in a reliable data centre with UPS and rock solid internet connection running your software that you VPN into would be the most flexible solution. As mentioned before, this could probably be 'rented' for about $100-$200 a month?

I guess the cost of running your strategy automatically on a hosed server needs to be compared to the cost of having a hardware/software/connection failure on our own PC.

I would strongly suggest that if you do setup an auto trade system (or even your everyday trading system) that it's not run on the family PC that could be crawling with the kids nasties. A dedicated PC would be the way to go. Then of course you need to consider ways to reduce hardware failures, connection failures etc.

Assuming your strategy sets stops; the worst case scenario in the event of an interruption would be all your open trades would potentially stop out. This should result in only 'opportunity' loss, such as if a stock sky rockets during the day, the system doesn't adjust your stops and then the price plummets. But then, if we aren't talking automated day trading, the risk of a catastrophic loss due to a PC/connection failure should be minimal as stops etc would only be calculated, adjusted and set at the end of the day.

So therefore, why need a 24/7 uptime system? The PC need only be on for an hour a night to receive EOD data, calculate trades/stops etc then transmit them to your broker.

I wonder if providers such as IB etc will implement some sort of platform for automated trading? Not too sure how they would go about this.

A bit of topic, but why isn't everyone running an automated system that produces a healthy annual return? I'm not denying that an automated system could make such returns, but why isn't everyone doing it? Almost a money tree

 

[Tradesurfer]

Thx for the thoughtful reply.

I do think there is benefit to be had from a start to finish auto trading program. I think the steps outined may be prohibitive to some fowks.

I have heard of 2 services that run strategies automatically. One in forex only and the other for anythnig. Basically it plugs in throug an api to a broker your choice of broker (participating brokers only)

Some of my systems (and the reason I'm asking for input and any experiences people may have) would be for daily or weekly chart traders so they just aren't going to run a system that needs a connection all the time to work. They want to set it and forget it.

Not trying to sell anything within this thread, just wanting to know if there is a current company offering it and any feedback.

The system thought would have to include position sizing and risk management though. Not just buy when price goes above 50 day and sell vice versa. How much out of total account would have to be a consideration

 

[RazzaDazzla]

Tradesurfer,

I think I may be mis-reading your post.

For weekly/end of day trades, there is no need for a 100% up time connection, as the calculations and trades (new and adjustments) would need only a short amount of uptime. That is; you'd need connection to receive eod data, the program would calculate what new trades or edits to exisiting trades need to be made, these wuld then be transmitted to your broker. At a guess, up time required of 30 minutes?

this could be run from the home PC, and you just need to check on a daily/weekly basis that your updated trades have been transmitted.

If you wanted to setup true set and forget, then yes, a server somewhere would be needed. But I'm guessing that anyone who sets this up would be checking the progress almost ona daily basis to make sure everyhting was running according to Hoyles. So therefore, may as well run it from the home PC as you will most likely be doing your checking on that anyway.

Apologies too, I wasn't trying to suggest you were attempting to sell something, I just wondered if there was an 'automated system' set up with some providers.

So, in summary I believe setting up a trading plan in AmiBroker, then using Ninja Trader to transmit the trades at a set time each night would be the way to go?

As I said before, I have no practical experience with this at all, but from what I understand of these programs, this is how you would do it. (isn't it?)