2013-12-25

System development processes

There are three main ways to develop an automated trading system:

1) By hand - This is the 'old way'. You know a well defined trading system by your own experience or a trading forum for example. So lots of them are available for free. You open an editor and code. So programming skills are necessary. There are a lot of pitfalls within this process. I will write more about after experiencing it :-).

2) By genetic programming - This is often a third party software and not included in most trading platforms. The computer develops a trading system according to your criteria. The system is executed in your trading platform. I will use genetic programming from the start. Soon I will talk more about that.

3) Neuronal network development - This is the state of the art and most demanding way to develop a trading system. To simplify the explanation you can describe it as a combination of 1 and 2. Although there is more to it. If you are interested in machine learning this is a very nice blog.

1 comment:

  1. Anonymous07:53

    No thanks. I am using a professional broker - not for retail customers.

    ReplyDelete