Automated Operating Future Trading For Individual Investors

[DummDays]

maybe I find some interested members in this forum, to discuss my idea of automated operating futures trading

its all about volume, no matter if is it selling or buying volume

lets take the "S&P E Mini" - a relatively slow moving future

1 point up or down is around 100 $

the programm should recognize high incomming volume, sell or buy immdiately 1 contract and add a "trail stop loss"

of 1 point in the E Mini

I have a trading account with interactivebrokers, so the commsion for each trade would be low enough to stay in profit

this automated system could be first back tested in the demo

if this system starts to work profitable, we could go further to much more volatile Futures

if anybody has a clue about programming, maybe you could share the information with me - or see a recorded webinar

https://interactivebrokers.webex.com/ec0605lb/eventcenter/recording/recordAction.do;jsessionid=L6FdPsKLphdns11jZVnZ1GjZnw7KDNQfhgJ4s8m4y2cLwGdFyVwb!-795599249?theAction=poprecord&actname=%2Feventcenter%2Fframe%2Fg.do&apiname=lsr.php&renewticket=0&renewticket=0&actappname=ec0605lb&entappname=url0107lb&needFilter=false&&isurlact=true&entactname=%2FnbrRecordingURL.do&rID=52584977&rKey=1c71d53939ba9aae&recordID=52584977&rnd=8020636895&siteurl=interactivebrokers&SP=EC&AT=pb&format=short

if you have or can provide any other sources, please post them here for discussion

hope to have called your attention

cheers

[PCA]

I don't see a system in your posting and 1 point in the ES is 50$. If you want to automate your trades you need to have excellent internet connection with as little latency as possible. Furtheron the ES on high volume is mostly very fast and noisy and a 1 point stop is definitely not going to work, then add spread, slippage and commission ...

Don't want to discourage you but you appear to have not much experience. Nevertheless only by trying you can find out what works.

[DummDays]

thank you very much for your input

I admit:

my experiences are still limited at this very moment, but I try to improove - with the help of such answers, you gave me -

thanks a lot

I just see:

high volume comes in - sell or buy - and it moves

with interactivebrokers, I am reducing most bad side effects, you mentioned - do you agree ?

a buy and sell - or vice verse - of an E Mini cost me 5 USD

even if 1 point is only 50 $, it would make still sense

I enjoy any further critics, considerings and thoughts about automated trading in general

cheers

Edited February 5, 2012 by DummDays

[4evermaat]

I don't see a system in your posting and 1 point in the ES is 50$. If you want to automate your trades you need to have excellent internet connection with as little latency as possible..........

I strongly encourage the use of vps or dedicated server when automating your trading. automation is a step in the right direction. among the numerous benefits, it helps keep yourself honest, objective, and offers scalability in your trading. Automating repetitive tasks successfully as much as possible enables entrepreneurs to focus on growing/managing their business.

"2nd best time to plant a tree is today." Sent from ThaiVisa app.

Edited February 5, 2012 by 4evermaat

[manarak]

Hi - former official derivatives trader here...

some advice:

- automated trading: I don't feel it's going to be successful, because there are already others doing the same and they will be much faster than you, because not only their scalping software sits directly on the same hardware as their exchange gateway, but also in some cases they know about high volume orders before they reach the market... illegal, but effective.

- manual scalping: can be done successfully, trade one or two contracts at a time, carefully. takes a lot of discipline.

- stops: they might not work as expected if there are price jumps

- contract size: forget about the E-Mini. tick size is too small. Better play the S&P proper and make a 1 - 2 tick profit every time.