Algorithmic Trading System Design & Implementation
AlgorithmicTrading.net is a third party trading system developer specializing in automated trading systems, algorithmic trading strategies and quantitative trading analysis. We offer five different trading algorithms to retail traders and professional investors.
Watch our algorithmic trading webinar replay where our lead developer reviews the performance of our Swing and Pro Trader algorithms. Visit our Algorithmic Trading Blog to see performance review videos and much more. Trading futures and options involves substantial risk of loss and is not suitable for all investors.
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The Swing Trader Highlights
Our Swing Trading Strategy trades the S&P 500 Emini Futures (ES) and Ten Year Note (TY). This is a 100% automated trading system which can be auto-executed with best efforts by multiple NFA Registered Brokers. It can also be installed and loaded onto the Tradestation platform. The following data covers the walk-forward (out-of-sample) period covering 10/1/15-1/10/19. Futures Trading involves substantial risk of loss and is not appropriate for all investors. Past performance is not indicative of future performance. This data assumes 1 unit ($15,000) was traded throughout the entire period under analysis (non-compounded).
Swing Trader Key Stats
| Unit Size | $15,000 |
| Walk-Forward Dates | 10/1/15-1/10/19 |
| Total $ Gain | +$24,209 |
| Avg % Gain/Mo | +4.14% |
| Total # Trades | 332 |
| Per Trade Win Rate | 74.4% |
| Max DD* | -$8,855 |
| Period Seen | 1/26/18 – 5/2/18 |
* Losses could exceed maximum drawdown. This is measured from peak-to-valley, closing trade to closing trade. Past performance is not indicative of future performance.
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Are Machines Really Taking Over The Markets?
It depends on who you ask, but recent articles and investment letters put out by top rated brokers such as Goldman Sachs seem to suggest that machines and trading algorithms are in fact taking over. Large Hedge Funds such as Blackrock have recently begun investing heavily in Stock Picking Strategies which are driven by Algos. Have you considered deploying an Algorithmic Trading System to take advantage of this new trend? You don’t have to invest in a Hedge Fund, Family Office or Commodity Trading Pool to take advantage of this change in investment styles. You can actually deploy an Algorithmic Trading Solution through an NFA Registered Broker, utilizing one of our Trading Algorithms.
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Percentage of Trades Placed by Automated Trading Systems
According to MacGregor, as of 2014 more than 75 percent of the stock shares traded on United States exchanges (including the New York Stock Exchange and NASDAQ) originate from automated trading system orders.
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Percentage of Trading Considered to be Traditional Stock Picking
Quantitative investing based on computer formulas and trading by machines directly are leaving the traditional stock picker in the dust and now dominating the equity markets, according to a new report from JPMorgan.
The Basics of Algorithmic Trading
Algorithmic Trading, also known as Quant Trading is a trading style which utilizes market prediction algorithms in order to find potential trades. There are various sub categories of quantitative trading to include High Frequency Trading (HFT), Statistical Arbitrage and Market Prediction Analysis. At AlgorithmicTrading.net, we focus on developing automated trading systems that place swing, day and options trades in order to take advantage of various market inefficiencies.
We are currently offering two Futures Trading Systems which trade the ES & TY futures. Continue reading to see for yourself how implementing a professionally designed algo trading system could be beneficial to your investment goals. We are not registered Commodity Trading Advisors and therefore do not directly control client accounts – however we do trade both trading systems with our own capital utilizing one of the automated trade execution brokers.
Algorithmic Trading Example
Ready To Join The Automated Trading Revolution?
Covering the Essentials of Automated Trading System Design
Multiple Algorithmic Trading Systems Available
Pick from one of our trading systems – either The Swing Trader or the S&P Crusher. Each page shows the complete trade list including post optimization, walk-forward results. These black-box, computerized trading systems are fully automated to generate alpha while attempting to minimize risk.
Multiple Trading Algorithms Working Together
Our quant trading methodology has us employing multiple algo trading strategies in order to better diversify your auto trading account. Learn more by visiting our trading strategies design methodology page.
Trades During Bear & Bull Markets
In our opinion, the key to developing an algorithmic trading system that actually works, is to account for multiple market conditions. At any time, the market could transition from a bull to bear market. By taking a market direction agnostic position we are attempting to outperform in both Bull & Bear market conditions.
Fully Automated Trading Systems
You can auto trade our algorithmic software using an auto-execution broker (with best-efforts). We have multiple brokers for you to choose from. Remove emotional based decisions from your trading by using our automated trading system.
Does Algorithmic Trading Work?
Track the daily progress of our quantitative trading algorithms with the OEC broker app. You will also receive daily statements from the NFA Registered clearing firm. You can compare each of your trades to the trade list we post at the close of every day. Complete algorithmic trading examples are posted for all to see. The complete trade list can be seen by visiting the algorithmic trading page for the system you are trading. Want to see some statements from live accounts? Visit the live returns & statements page.
Multiple Quant Trading Strategies
Our quantitative trading systems have different expectations based on the predictive algorithms employed. Our Automated Trading Systems will place swing trades and day trades. These 100% Quantitative Strategies are based purely on technical indicators and pattern recognition algorithms.
Multiple Trading Algorithms Are Traded As Part of A Larger Algorithmic Trading System
Each algorithmic trading strategy offered has various strengths and weaknesses. Their strengths and weaknesses are identified based on three potential market states: Strong Up, Sideways & Down moving markets. The Momentum ES trading strategy can outperform in up moving markets, while the treasury note algorithm excels in downward and sideways moving markets. Checkout the following collection of videos, where each trading algorithm offered is reviewed by our lead developer. The strengths of each trading algo is reviewed along with it’s weaknesses.
Multiple Types of Trading Strategies Are Used in Our Automated Trading Software
Day trades are entered & exited the same day, while swing trades will take a longer term trade based on expectations for the S&P 500 to trend higher or lower in the intermediate term.
Swing Trading Strategies
The following Swing Trading Strategies place directional swing trades on the S&P 500 Emini Futures (ES) and the Ten Year Note (TY). They are used in both of the automated trading systems we offer to take advantage of longer term trends our market prediction algorithms are expecting.
Futures Swing Trading Strategy #1: Momentum Swing Trading Algorithm
The Momentum Swing Trading Strategy places swing trades on the Emini S&P Futures, taking advantage of market conditions that suggest an intermediate term move higher. This trading algorithm is used in both of our automated trading systems: The S&P Crusher v2 & The Swing Trader.
Futures Swing Trading Strategy #2:Ten Year Treasury Note Algorithm
The Treasury Note (TY) Trading Strategy places swing trades on the Ten Year Note (TY). Since the TY typically moves inverse to the broader markets, this strategy creates a swing trade that is similar to shorting the S&P 500. This T-Note algo has positive expectations for down moving market conditions. This trading algorithm is used in both of our automated trading systems: The S&P Crusher v2 & The Swing Trader.
Day Trading Strategies
The following day trading strategies place day trades on the S&P 500 Emini Futures (ES). They almost always enter into trades during the first 20 minutes after the equity markets opened and will get out before the markets close. Tight stops are utilized at all times.
Futures Day Trading Strategy #1: Day Trading Short Algorithm
The Short Day Trading Strategy places day trades on the Emini S&P Futures when the market shows weakness in the morning (prefers a large gap down). This trading strategy is utilized in the S&P Crusher v2 automated trading system.
Futures Day Trading Strategy #2: Breakout Day Trading Algorithm
The Breakout Day Trading Strategy places day trades on the Emini-S&P Futures when the market shows strength in the morning. This futures trading strategy is utilized in the S&P Crusher v2 automated trading system.
Futures Day Trading Strategy #3: Morning Gap Day Trading Algorithm
The Morning Gap Day Trading Strategy places short day trades on the Emini S&P Futures when the market has a large gap up, followed by a short period of weakness. This trading strategy is utilized in the S&P Crusher v2 automated trading system.
While each of these trading strategies can be traded stand alone, they are best traded in a broader collection of trading algorithms – as seen in one of our Automated Trading Systems such as The Swing Trader.
Trading Algorithms that Actually Work?
This algorithmic trading video series is done so that our customers can see the details of each trade on a weekly basis. Watch each of the following algorithmic trading videos to see in real time, how our trading algorithms perform. Feel free to visit our AlgorithmicTrading.net Reviews & Press Releases page to see what others are saying about us.
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What Separates Algorithmic Trading From Other Technical Trading Techniques?
These days, it seems like everyone has an opinion on Technical Trading techniques. Head & Shoulders patterns, MACD Bullish Crosses, VWAP Divergences, the list goes on and on. In these video blogs, our lead design engineer analyzes a few examples of trading strategies found online. He takes their Trading Tips, codes it up and runs a simple back-test to see how effective they really are. After analyzing their initial results, he optimizes the code to see if a quantitative approach to trading can improve the initial findings. If you are new to algorithmic trading, these video blogs will be quite interesting. Our designer utilizes finite state machines to code up these basic trading tips. How does Algorithmic Trading differ from traditional technical trading? Simply put, Algorithmic Trading requires precision and gives a window into an algorithms potential based on back-testing which does have limitations.
Looking For Free Algorithmic Trading Tutorial & How To Videos?
Watch multiple educational video presentations by our lead designer on algorithmic trading to include a video covering our Quant Trading Design Methodology and an Algorithmic Trading Tutorial. These trading strategy videos provide algorithmic trading coding examples and introduce you to our approach of trading the markets using quantitative analysis. In these videos you will see many reasons why automated trading is taking off to include helping to remove your emotions from trading. Visit our Educational Trading Videos page to see a full list of educational media.
Start Using One Of Our Automated Trading Systems Today
Don’t miss out. Join those already trading with AlgorithmicTrading.net. Get started today with one of our algorithmic trading packages.
Multiple Automated Trade Execution Options Are Available
Our trading algorithms can be auto-executed using one of the NFA registered auto-execution brokers (with best-efforts) or they can be traded on your own PC using either MultiCharts or Tradestation.
The FOX Group is an independent introducing brokerage firm located at the iconic Chicago Board of Trade building in the heart of the city’s financial district. They are registered with the NFA and are able to auto-execute our algorithms with best efforts.
Interactive brokers is an NFA registered broker who can auto-execute our algorithms with best efforts. In addition, they support Canadian clients.
If you prefer to run the algorithms on your own PC, then MultiCharts is the preferred trading software platform for auto execution. It offers considerable benefits to traders, and provides significant advantages over competing platforms. It comes with high-definition charting, support for 20+ data feeds and 10+ brokers, dynamic portfolio-level strategy backtesting, EasyLanguage support, interactive performance reporting, genetic optimization, market scanner and data replay.
TradeStation is best known for the analysis software and electronic trading platform it provides to the active trader and certain institutional trader markets that enable clients to design, test, optimize, monitor, and automate their own custom equities, options & futures trading strategies. Tradestation is another option for individuals who wish to auto trade our algorithms on their own PC.
Questions?
Make sure you visit our Frequently Asked Questions page to see a list of common questions and answers. You can also click here to learn more about AlgorithmicTrading.net and it’s Lead Developer.