How to Code an Own Algorithmic Trading Strategy

 

 Your algorithmic trade follows exactly your trading strategy. The only difference is that instead of you doing it manually the computer does it for you. Therefore, the first step in writing your algorithmic trading strategy is to have a full-proof trade plan. Algo trading without planning can lead to loss or confusion.

What not to do

If you are thinking, copying a trading strategy online and then coding it can make you rich, you are wrong. There area lot misleading information online that promises you instant richness. Most of them, however, fail to give you any results.

The first step to code your algorithm trading strategy is to have a tested strategy. This then needs to be designed, built, and maintained by you to make your code run for you.

What does your algorithmic trading code do for you?

The idea is simple. Your code in your trading strategy in the form of an algorithm and the code perform the same steps for you. Your code performs buy and sell transactions in the market based on your entry, exit, and stop-loss rules. You also have to be clear on your position, sizing, and risk management before you begin to code your trading algorithm. The idea is to start with modest and realistic expectations and look for strategies that give you persistent and regular returns in the market.

Software to write your trading code  

You need a good computer and a high speed internet connection, as well as basic knowledge of programming language to write your algorithm for trading. You will also need a trading platform that lets you key in your coding strategies into it. Look for software that lets you trade on varied assets like equity, forex, commodity, and even crypto currency.

The secret to becoming rich with your algorithm trading strategy

To make money in the market you need to have a tested strategy in place. This should be proven from the market and economic point of view. You need to develop a mathematical model, whichshould be backed by statistical methods.

The code should be able to capture persistent and identifiable inefficiencies in the market. There should be strict rules that let the code to take benefit of the market behaviors. It is important to identify strategies that work repeatedly. A one-time thing may never let you know whether the success or failure was purely because of chance.

Backtest and live trade 

Your trading code should take your trading capital and personal risk in mind. It will be a combination of technical, fundamental, and statistical analysis. You may need to keep the macro and microeconomics in your viewpoint. Backtest your strategy over many data points and once done you can code the strategy into your trading robot and sit back while the robot makes money for you.

Learning Coding Online

If you are serious about coding for Algo trading strategy or build your career as Quanta developers and analysts then join online Algo Trading Course from reliable institute like TIAT.  By taking up this course, you can improve basics & advance programming skills, data science and data analytics. Whether you are a trader, non-programmer or programmer, algorithm-trading course online works on your favour.