Automated System Based on Support and Resistance

[dsalas 10]

Hello Guys, i use Market profile, volume profile and of course basic support and resistance on a chart for finding levels on the ES, FESX, CORN and Bund.....

 

I was thinking about building an automated trading system but i HAVE NO idea, really, zero idea....on how people do this....does anyone have a clue about how to do this...it will be very good to write a program that "does" things for me instead of me watching the screen at lunch hour ( i am in the UK)

 

thanks lots

 

Daniel

[Tams 20]

Hello Guys, i use Market profile, volume profile and of course basic support and resistance on a chart for finding levels on the ES, FESX, CORN and Bund.....

 

I was thinking about building an automated trading system but i HAVE NO idea, really, zero idea....on how people do this....does anyone have a clue about how to do this...it will be very good to write a program that "does" things for me instead of me watching the screen at lunch hour ( i am in the UK)

 

thanks lots

 

Daniel

 

if you can imagine it,

visualize it,

quantify it,

articulate it,

you can program it.

[dsalas 10]

How can I do that tams?

[Tams 20]

How can I do that tams?

 

You have already imagined it,

you have already visualized it,

 

now you have to

1. quantify it in logics, (ie IF this happens, THEN do this, ELSE do that...)

2. articulate it with written words, flow charts, diagrams, pseudo codes,

 

then we can program it.

[alleyb 10]

The key is risk management and that is dependent on many things, sometimes Time, sometimes Speed of Movement, sometimes Volume, sometimes Dollar amount, sometime Cycles of X Number of Bars, sometimes Seasonals, sometimes Percentages of Movement and sometimes Percentages of Account with regard to Leverage and/or Drawdown sometimes external events both known and unknown

 

The advice of IF THIS THEN THAT is good but you also need to know how to program position sizing according to market condition. Not all trades are equal in terms of risk some are scalps some are swings. Differentiate this and then you have an ALGO to take on the very best

 

You state support and resistance. Define them. for me in MP then support is defined as when the buyer is able to halt the selling and the buyer is able to overwhelm the seller and stabilize the market in terms of directional trade. and obviously vice versa. This could be as simple as saying if X bar rotates in the opposite direction and exceeds then.... However how would you deal with a bar that opens on a high and closes on a low followed by the next bar that opens on the low and closes on the high

 

Define your Timescale, Define your Basis for Order Entry and Order Exitt, Define Rsk Proposed,

write it out and apply the logic

[robertm 10]

However how would you deal with a bar that opens on a high and closes on a low followed by the next bar that opens on the low and closes on the high

 

You define a range filter, this solves this issue. Volatility works better for this than % price or % retrace.

 

Or you invent AI & just tell it your logic & let it write the code for you :missy:

[TraderWill 11]

Hi Dsalas,

 

Have you programmed on your charting platform before? If not then the first step is to learn how to code some simple indicators and get familiar with the programming language. Most charting applications have tutorials to help you. Then if you want to look at support/resistance levels you can code a simple indicator to plot the highest high and lowest low over different time frames, eg the last hour, since session start, last 15 minutes, etc. This can show you clusters of support/resistance levels and you then move to the next step, deciding what you want your system to do when price is near those levels.

 

Good luck in your trading.

[max8ion 10]

I think you shouldn't do it on your own, maybe the best way is gonna be to ask help from the professionals? Probably they will do it in a better way, and you will make your lunch time free from watching your screen!

[robertm 10]

I think you shouldn't do it on your own, maybe the best way is gonna be to ask help from the professionals? Probably they will do it in a better way, and you will make your lunch time free from watching your screen!

 

Then you may as well just give them your money and have them be your fund manager. Doing it yourself is what makes it YOUR system, instead of theirs. Once you have your idea just steal some code and tweak it to fit your logic.

[dsalas 10]

Hi To all guys, Hi TraderWill. No I have not programmed anything before. I have no idea how to do this. I once attend a course for Visual Chart where they teach you to program based on MA, but it was really bad. I would like to know how to program an strategy, i mean, i dont even know what book to read or which seminar to attend. I use market profile and volume profiles as i titled the thread but that is all. Programming a strategy that could say something like "if the market is trending up and the value are high is touch buy at market with a stop of 2 points in the E-mini sp 500 and a profit target xxx" for example that is the issue i would have to look at levels in the market to determine where are the best entry points that is why i have no idea how to do this

 

thanks so much for the help guys

 

Daniel

[Tams 20]

Hi To all guys, Hi TraderWill. No I have not programmed anything before. I have no idea how to do this. I once attend a course for Visual Chart where they teach you to program based on MA, but it was really bad. I would like to know how to program an strategy, i mean, i dont even know what book to read or which seminar to attend. I use market profile and volume profiles as i titled the thread but that is all. Programming a strategy that could say something like "if the market is trending up and the value are high is touch buy at market with a stop of 2 points in the E-mini sp 500 and a profit target xxx" for example that is the issue i would have to look at levels in the market to determine where are the best entry points that is why i have no idea how to do this

 

thanks so much for the help guys

 

Daniel

 

the mechanics of programming is easy... you just need to read the manual.

 

the challenge is not in the programming language,

but in how you define, in plain English, what needs to be programmed.

 

the computer is just a dumb machine.

it executes actions according to your instruction.

you just need to give it that "Instruction" for it to be smart.

[Tams 20]

eg.

when you say a "pivot low"... a lot of people will naturally have a visual idea of what you are trying to convey:

a "low"... then a change in direction.

although different people would have different definition of what a "pivot low" is,

most will have a similar visual image.

 

but a computer has no imagination.

you have to tell the computer in no uncertain terms the characteristics and attributes of a pivot.

you have to define... step by step, line by line, what constitute a pivot.

and you have to do the same for all the logics you use in your trading.

[robertm 10]

the mechanics of programming is easy... you just need to read the manual.

 

the challenge is not in the programming language,

but in how you define, in plain English, what needs to be programmed.

 

the computer is just a dumb machine.

it executes actions according to your instruction.

you just need to give it that "Instruction" for it to be smart.

 

As a non-programmer (education wise) with an IT background I would have to disagree. Even one of the big quant firms said recently "it's easier to teach a programmer to trade than a trader to program". they hire programmers with no trading background, then feed them logic trees.

 

Very few programming structures are written "for dummies" to be able to get a handle on. Only those written by a complete novice in their own process of trying to learn come close to being a teaching guide.

 

I agree that the logic is the key to success, but getting that into code can be a painful, if not impossible, task for some (which is when they come to Tams for help!)

[TraderWill 11]

Daniel, if you've never programmed before then you have a challenge ahead of you. Look in your charting platform's help file and see if they teach some programming basics there, or maybe there's a link on their website with programming tutorials. Then just go through the tutorial lessons and sample code patiently. Try to program a simple indicator like a moving average, ramp up the difficulty by programming a moving average cross system, etc, just gradually build up the difficulty. A good tutorial will walk you through the process. After you're done with that you can look at the code for the indicators built into your charting platform. I know that you can look at source code for indicators on Tradestation, Metatrader and Ninjatrader, I don't know about any other platforms, no experience with them.

 

It won't be a quick process because you'll be learning a new language. Only after you've learned it can you start coding your own system. Unfortunately there's no shortcut.

 

Now if you have a friend who knows how to program you could get together with him, share your strategy with him so that he does the coding and as long as you know that you can trust him then you two will be the only people trading it.

 

Good luck in your trading.

[bodavid 10]

Markplex.com could be a starting point for someone with no programming experience.