Today, we are going to start our algorithmic trading blog with an interesting code that helps mouse traders follow the market when it goes up and down.
First of all, try to answer the following questions:
Have you ever missed a break out because you were not fast enough sending orders?
Do you sometimes feel like if you were able to send more orders, your trading profits would be more significant?
Do you face problems in managing your strategy when there is not a defined tendency in the share price?
Are you annoyed at changing many times the share price to move $0.01, or do you want to change your orders at the same time?
If your answer, many times, is yes, then you will be interested in our next material.
We will be talking about Apple Inc. (NASDAQ:AAPL), which usually shows very large swings and reversals, and also has a large share price number. Additionally, we will be using Interactive Brokers and its Java API.
While trading, we enjoy moving fast and doing it at the speed of the market.
However, with so many HFT algorithms out there nowadays, it is quite complicated to compete if you don’t have a good trading software and a good broker. Interactive Brokers is a good solution, fair enough, but it does not have everything. We usually need to code our own tools.
The following is our most recent example. Check this image:
This image shows the GUI of an algorithmic trading solution for managing a group of six orders. It is an interesting alternative for market participants, who want to send different orders and move them at the same time. It works with lots of 100 shares, which is, taking into account the commissions, the most optimal amount of shares in Interactive Brokers.
What’s the strategy?
The main idea is to send orders below the bid and above the ask trying to profit from breakouts and reversals. It is an interesting strategy for making some pips when the price goes to a psychological resistance or a critical support:
The GUI permits sending orders at a different price, so that the user is able to select the resistance or the support. In our experience, it is much more interesting to select the levels manually than using another algorithm. We try to keep things simple!
Have a look:
Once we have introduced the prices, we can send the orders one by one. The market participants who have traded with interactive Brokers should know that this is much easier than using their software. It is a great way of preparing different orders from only one window.
But, there is more.
Once we have been able to send all the orders, we can move them very fast up or down to try to follow the market. We can either move them independently by clicking on each “UP 0.01” or “DOWN 0.01” buttons, or we can move the six orders at the same time, which is much more convenient. Nowadays, HFT algorithms are moving the market at less than 0.01 second, so if you need to click six buttons, sometimes you are out of the market.
In the following video, everything will be a little more clear. Have a look:
Please let us know if you have some good new ideas for this algo. Together on the Internet, we are more powerful.
Also, send us an email if you need the program or you have some strategy that you want to develop: firstname.lastname@example.org