This is thread on how to create an automated trading system from scratch (from absolutely scratch).
From conceiving an idea to implementing it, getting feedback and improving it and even creating your own data sources (everything open source)
This would be one big heck of a ride and you need to spend some time hands on (I expect it would take me 45 days to complete this)
This assumes no prior knowledge whatsover about programming or even technical analysis but you must have some basic finance fundamentals.
I am going to use a pipeline based approach of selecting stocks. So I am not going to select any predefined stocks just a stock universe
To begin with, this is the system to be implemented before improving it
Because I use them and they have better automation tools to execute orders fast.
And everything is to be open source,; no paid data, no fancy indicators, no complex machine learning, nothing.
Just plain logic and a willingness to learn and some greatness to accept defeat and move on.
Warning
Python installation
Python primer for trading
and definitely vote the above poll
From conceiving an idea to implementing it, getting feedback and improving it and even creating your own data sources (everything open source)
This would be one big heck of a ride and you need to spend some time hands on (I expect it would take me 45 days to complete this)
This assumes no prior knowledge whatsover about programming or even technical analysis but you must have some basic finance fundamentals.
I am going to use a pipeline based approach of selecting stocks. So I am not going to select any predefined stocks just a stock universe
To begin with, this is the system to be implemented before improving it
- Select NIFTY 50 stocks
- Place orders at the beginning of the day (short the top 5 returns the previous day)
- Keep a standard stop loss, say 3% and a standard SELL price percentage
- Close positions by the end of the day
- All orders ae intra-day cash orders
- Capital = 20000
- Leverage = 5
- Returns expected = 5 to 10% in 1 month (for 5X Leverage; mean return = 5%)
- Max drawdown = 5% * multiplied by leverage = 25%
- Python Anaconda installed
- Zerodha broker
Because I use them and they have better automation tools to execute orders fast.
And everything is to be open source,; no paid data, no fancy indicators, no complex machine learning, nothing.
Just plain logic and a willingness to learn and some greatness to accept defeat and move on.
Warning
- The original system above would result in a loss after adjusting for other expenses; the mean return is on the improved system (that would be implemented by the end)
- For newbies, don't get stuck by the simplicity. Its too tempting to leverage up but keep the max leverage at 5. You can enter into live trades also (but beware your max loss is only 5000)
Python installation
Python primer for trading
and definitely vote the above poll
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