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Charts & Analysis

System Trading – A link to begin with

To read more about System Trading (read my last post) check out Ed Seykota’s Trading System Project.

The project gives you an idea about how trading systems can be created and what is important. While this uses U.S. data it can be applied to Indian data as well.

  • Gunjan says:

    >Hi Deepak,

    This is really a great techno-financial funda. If trading follows patterns from the past, as you said, its really going to benefit.

    I found some interesting basic stuff on internet and thought might be useful to others!

    How to create stock trading system
    http://www.simple-stock-trading.com/stocktradingsystem.html

    Coding for trading system (technical)
    http://www.investopedia.com/university/systemcoding/

    Of course there are lot of books that describes one or the other trading strategies based on some or the other historical pattern. There are books on comparison of trading system as well.

    Shouldn’t you be focusing more on historical data mining first? So that you have ocean of data to come out with patterns. Then you can derive patterns and strategies based on the ample data you have. And then test each sub-system.

    Really very fascinating work!

  • Madhavan says:

    >A query. When you say a trading system, is it just a program which gives signals; or are you also speaking of some sort of a program which also automatically places the orders with the broker.

    If it’s the latter, then I am curious how you would do that. Say you have an online account like ICICIDirect or Reliance Money, how would you automatically place an order with them. Is it possible?

  • Deepak Shenoy says:

    >Excellent stuff, thanks Gunjan!

    Getting historical data and creating valid data sources from them is a key part of the whole system. A lot of data we’ve recently seen has a glitches in it, and we need to get rid of them manually. Even with data directly from the NSE!

    Madhavan: I mean which gives signals – the automation of execution is something that can be done but no broker has allowed an API access yet. I’m sure that will come too!

  • Amitabh Jain says:

    >Hi Deepak,

    Great post – you have a wonderful blog!

    Had a question: where can one get historical prices for NSE and BSE?

    Cheers,
    Amitabh