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 two distinct trading algorithms to retail traders and professional investors.

Watch our algorithmic trading video blog where our lead developer reviews the performance from 5/1/17-6/9/17 using our automated trading system.  Visit our blog to see all performance videos for 2016-2017 YTD. Trading futures and options involves substantial risk of loss and is not suitable for all investors.

Get Started In Algorithmic Trading Today.

The Swing Trader Highlights

Our Swing Trader Package 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 10/15/15-6/14/17. Trading futures 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).

Algorithmic Trading Strategy

* 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.

CFTC RULE 4.41: Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

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 algorithmic 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 trading systems which trade the ES/TY futures.  Continue reading to see for yourself how implementing a professionally designed quantitative 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 auto-execution brokers.

Algorithmic Trading System

Algorithmic Trading Example

The Swing Trader Package

This package utilizes our best performing algorithms since going live. Visit the swing trader page to see pricing, complete trade stats, full trade list and more.  This package is ideal for the skeptic who desires to trade a robust system that has done well in blind walk-forward/out-of-sample trading.  Tired of over optimistic back-tested models that never seem to work when traded live? If so, consider this trading system.

Details On Swing Trader System

The Swing Trader Performance Page

The S&P Crusher v2 Package

This package utilizes seven trading strategies in an attempt to better diversify your account. This package utilizes swing trades, day trades, iron condors and covered calls to take advantage of various market conditions. This package trades in unit sizes of $30,000 and was released to the public in October of 2016.  Visit the S&P Crusher product page to see the back-tested results based on tradestation reports.

Details On The S&P Crusher

The S&P Crusher Performance Page

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.

 

Multiple Trading Algorithms Working Together

Our algorithmic trading methodology has us employing multiple algo trading strategies in order to better diversify your auto trading account.   Learn more by visiting our algorithmic trading design methodology page.

 

 

Trades During Bear & Bull Markets

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 algos 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.

 

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, day trades, iron condors & covered calls.  These 100% Quant Strategies are based purely on technical indicators and pattern recognition algorithms.

 

Our Automated Trading Software Helps Remove Your Emotions From Trading

Schedule a Demo of our Algorithmic Trading Software

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 iron condor trading strategy outperforms in sideways and up moving markets, while the treasury note algorithm excels in downward moving markets. Based on the back-testing, the momentum algorithm is expected to perform well during up 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.  Options trades are placed on the S&P 500 Weekly options on futures, typically entering on a Monday and holding until Friday’s expiration.

Swing Trading Algorithms
The following algorithms place directional swing trades on the S&P 500 Emini Futures (ES) and the Ten Year Note (TY). They are used in multiple trading systems we offer to take advantage of longer term trends our market prediction algorithms are expecting.

 

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 two trading systems we offer: The S&P Crusher v2 & The Swing Trader.

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 two trading systems we offer: The S&P Crusher v2 & The Swing Trader.

Day Trading Algorithms
The following algorithms 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.

 

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.

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 trading strategy is utilized in the S&P Crusher v2.

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.

Options Trading Algorithms
The following options trading algorithms collect premium on the S&P 500 Emini Weekly Options (ES). They are used in our S&P Crusher v2 in order to take advantage of sideways, down & up moving market conditions. One benefit to trading options with our algos is that they are supported in an automated trading environment using one of the auto-execution brokers.

 

 

Iron Condor Options Trading Algorithm

The Iron Condor Trading Options Trading Strategy is perfect for the individual who wants a higher back-tested per trade win rate or who simply wants to collect premium on the S&P 500 Emini Futures by selling Iron Condors. When our algorithms expect a sideways or upward drifting market condition, this system will create an Iron Condor trade. This strategy is used in one of our Trading Systems: The S&P Crusher

Covered Calls Options Algorithm

The Covered Call Options Trading Strategy sells out of money covered calls against the momentum algorithms Long ES swing trades, to collect premium and help minimize losses should the market move against our momentum algorithm position.  When traded with the Momentum Swing Trading Algorithm- as is the case in the S&P Crusher & ES/TY Futures Trading Systems, this creates a covered call position.  When traded in the Bearish Trader Trading System, the calls are sold without being covered and are therefore naked short. In both cases – as a stand along algorithm – it performs well in sideways and down moving market conditions. This strategy is used in one of our Trading Systems: The S&P Crusher

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.

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 Algorithmic Trading Design Methodology  and an Algorithmic Trading Tutorial. These free 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.

 

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.

 

Start Auto Trading Today


AlgorithmicTrading.net provides trading algorithms based on a computerized system, which is also available for use on a personal computer. All customers receive the same signals within any given algorithm package. All advice is impersonal and not tailored to any specific individual's unique situation. AlgorithmicTrading.net, and its principles, are not required to register with the NFA as a CTA and are publicly claiming this exemption. Information posted online or distributed through email has NOT been reviewed by any government agencies — this includes but is not limited to back-tested reports, statements and any other marketing materials. Carefully consider this prior to purchasing our algorithms. For more information on the exemption we are claiming, please visit the NFA website: http://www.nfa.futures.org/nfa-registration/cta/index.html. If you are in need of professional advice unique to your situation, please consult with a licensed broker/CTA.

DISCLAIMER: Commodity Futures Trading Commission Futures trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website or on any reports. The past performance of any trading system or methodology is not necessarily indicative of future results.

Unless otherwise noted, all returns posted on this site and in our videos is considered Hypothetical Performance. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

With the exception of the statements posted from live accounts on Tradestation and/or Gain Capital, all results, graphs and claims made on this website and in any video blogs and/or newsletter emails are from the result of back-testing our algorithms during the dates indicated. These results are not from live accounts trading our algorithms. They are from hypothetical accounts which have limitations (see CFTC RULE 4.14 below and Hypothetical performance disclaimer above). Actual results do vary given that simulated results could under — or over — compensate the impact of certain market factors. Furthermore, our algorithms use back-testing to generate trade lists and reports which does have the benefit of hind-sight. While back-tested results might have spectacular returns, once slippage, commission and licensing fees are taken into account, actual returns will vary. Posted maximum draw downs are measured on a closing month to closing month basis. Furthermore, they are based on back-tested data (refer to limitations of back-testing below). Actual draw downs could exceed these levels when traded on live accounts.

CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under — or over — compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Statements posted from our actual customers trading the algorithms (algos) include slippage and commission. Statements posted are not fully audited or verified and should be considered as customer testimonials. Individual results do vary. They are real statements from real people trading our algorithms on auto-pilot and as far as we know, do NOT include any discretionary trades. Tradelists posted on this site also include slippage and commission.

This strictly is for demonstration/educational purposes. AlgorithmicTrading.net does not make buy, sell or hold recommendations. Unique experiences and past performances do not guarantee future results. You should speak with your CTA or financial representative, broker dealer, or financial analyst to ensure that the software/strategy that you utilize is suitable for your investment profile before trading in a live brokerage account. All advice and/or suggestions given here are intended for running automated software in simulation mode only. Trading futures is not for everyone and does carry a high level of risk. AlgorithmicTrading.net, nor any of its principles, is NOT registered as an investment advisor. All advice given is impersonal and not tailored to any specific individual.

* Published percentage per month is based on back-tested results (see limitations on back-testing above) using the corresponding package. This includes reasonable slippage and commission. This does NOT include fees we charge for licensing the algorithms which varies based on account size. Refer to our license agreement for full risk disclosure.